Everyone, it seems, is talking about health care reform and what it will mean to individuals, employers, and our nation. Whether you call if the Affordable Care Act or Obamacare, this complex law will have a major impact on health care and health insurance in the United States.
The Affordable Care Act will benefit some Americans, such as low-income households who are eligible for subsidies on new insurance “exchanges”, and people with serious pre-existing conditions who might not have been able to access comprehensive coverage in the past.
However, many others may feel left behind by the Affordable Care Act. Some provisions of the law may actually drive the cost of traditional health insurance up, not down. Many hard-working, middle-class Americans will also find that due to their household income they are ineligible for government subsidies on the insurance exchanges.
Some of the law’s biggest impacts will be felt by those who purchase coverage for themselves – and their families – in what is called the “individual market”. The individual market serves those people that don’t get health care coverage through their employer, and who aren’t eligible for government-sponsored health programs like Medicaid and Medicare.
Historically, people purchase individual health insurance with the assistance of a licensed agent who can help them understand the benefits and costs of the policy. That type of one-on-one interaction with an experienced agent helps ensure that you get the coverage that best meets your needs.
Beginning in 2014, consumers will have another option: the health care exchanges. The federal government will run these exchanges in most of the country, and some states are creating their own exchanges. The exchanges will be greatly constrained in the type of products they can sell, as all exchange products must contain a minimum level of benefits.
In light of the new requirements of health care reform, many industry observers have expressed concern that the policies offered on the exchange might be too expensive for many Americans and their families. Some consumers shopping in the exchanges will be able to benefit from government-provided subsidies. However, those subsidies are on a sliding scale based on income - meaning the higher your household income, the less help you are provided. Individuals earning over $45,000 per year (approximately) will not be eligible for these subsidies at all.
Despite the best of intentions, it is becoming clear that the Affordable Care Act will leave some Americans behind.
