How Healthcare Will Change Under the Affordable Care Act

How Healthcare Will Change Under the Affordable Care Act
The Affordable Care Act promises to provide affordable health insurance to Americans,
regardless of pre-existing conditions or income level. The law is large and complex, so it’s
important to understand the basics including the health care mandate, which will take effect in
2014.
State-Based and Federal Health Insurance Exchanges
Among the most significant impacts of the ACA is the online insurance marketplace. Sixteen
states and the District of Columbia have created state-based health insurance exchanges to
help consumers obtain health coverage. The remaining 27 states opted not to create state
exchanges, and consumers in those states can obtain coverage through the federal exchange.
Both the state and federal exchanges will enable consumers to compare plans from
participating insurers and find one that best suits their needs. The added transparency and
simplification of the process are intended to create incentives for insurers to become more
efficient and offer better service to their customers.
About the Healthcare Mandate & Subsidies
The new law will require that most Americans purchase health insurance by January 1, 2014.
Individuals making less than $45,960 or a family of four making less than $94,200 may qualify
for subsidies from the federal government to help pay for the cost of coverage. The subsidy is
awarded on a sliding scale, with low-income individuals and families receiving a larger subsidy
than those with higher incomes. To keep insurance affordable, the law states that an individual
will not be required to pay more than 9.5 percent of their income toward health insurance.
The ACA aims to help small business owners find affordable coverage for their employees.
Historically, small businesses have paid about 18 percent more for coverage plans than larger
companies. The new law is intended to level the playing field, requiring businesses that employ
50 people or more to provide coverage for their workers by 2015. Tax credits will be extended to
some businesses to help them offset the cost of providing coverage, and the health insurance
exchanges are designed to help business owners obtain coverage for their employees.

Young People, College Students and Low-Income Individuals & Families
The ACA allows young people and college students to remain on their parents’ health insurance
policy through age 26. Since many recent college graduates are struggling with student loan
debt and a difficult labor market, this provision could provide these individuals a much needed
financial break.
The ACA also expands Medicaid coverage to low-income families in an effort to help them
obtain coverage. Historically, many of low-income earners have been left uninsured, earning
just enough to be ineligible for assistance but too little to afford coverage on their own. Among
the goals of the ACA is to shore up the social safety net for these hard-working individuals.
Like any major program, the ACA has and will continue to hit bumps and delays as it is
implemented. The hope is that over time the program will help slow the pace of health care cost
increases and make health care accessible for all Americans.
For more information visit http://www.benefitpackages.com