How Do I Get Obamacare?

When will the Affordable Care Act allow me to purchase health insurance?

"Obamacare" or otherwise known as the The Patient Protection and Affordable Care Act was enacted into law on March 23, 2010. It puts in place a requirement that all citizens must have a minimum level of health insurance coverage in place by 2014. Starting on January 1, 2014 , all citizens will be able to purchase a qualified health plan through their state's Health Benefit Exchange or through the private market. All states are required to either have an exchange in place by that date or the HHS department will set up one for them. On that date, you will be able to purchase a qualified health insurance plan through your state's exchange that provides the essential health benefits package under Act Sec. 1302(a) of the law.

Until that date, the buying process for health insurance will remain essentially the same as it is now. However, many improvements took place immediately such as no lifetime maximum's and allowing children to stay on parent's plans until age 26.

What is a 'qualified health plan' and what's are the minimum 'essential benefits'?

A Qualified Health Plan as required by the law:

  1. Is certified and/or approved by the exchange
  2. provides essential benefits required by the law
  3. offered by a health insurance company that is licensed and in good standing that will offer at least one plan at the silver level and one at the gold level. The health insurance company will charge the same premium regardless of whether the plan is bought through an exchange or through an insurance agent.
  4. An approved co-op plan or non-profit health insurance are considered qualified health plans.

Essential benefits that are required to be offered includes:

The levels of coverage offered by exchange plans are expected to vary in cost and coverage from bronze to platinum. The coverage will vary from 60% to 90% of actuarial value depending upon which level of coverage you buy (bronze, silver, gold or platinum). These rules may change so keep yourself updated through healthcare.gov.

How can I afford to buy a plan if I have a low income?

One great part of the law includes a provision whereby individuals and families can take a new premium tax credit to help them pay for health insurance. This is only for lower income citizens who's adjusted gross incomes are between 100% to 400% of the Federal Poverty Line (FPL). You will be able to take this credit regardless of whether or not you have any tax liability. You can also have the credit paid in advance directly to your insurance company to help pay for your plan's premium and keep your monthly costs low!

Who is eligible for the Health Insurance Tax Credit Subsidy?

Both the tax credit for low incomes and requirement to have health insurance don't take effect until January 1, 2014. You can't receive the credit until that date. At that time, you can find insurance coverage through one of the exchanges that will be set up in your state. Visit healthcare.gov for more information on the exchanges and any changes to the proposed rules. You can not be turned down for insurance coverage if you have a pre-existing condition and can't be dropped if you get sick when you enroll after January 1, 2014 per the new law.

You can also find individual plans from major private health insurers. If you want to compare rates and quotes , then we recommend InsureMe where you can compare rates from dozens of health insurers such as Aetna, Humana, BCBS, Anthem, United Health and many more. They also include quotes from independent insurance agents as well. eHealthInsurance.com is another great source of plan comparisons.

What if I have a pre-existing condition and was denied coverage?

Currently, insurance companies can still deny coverage until January 1, 2014 due to pre-existing conditions. If you have been turned down for health insurance in the meantime, then you may be eligible for coverage through a temporary high risk pool (PCIP) that was also a requirement of the law.

Recommended Reading CCH Guide - Patient Protection Affordable Care Act

This should not be considered financial advice which can only be given by a qualified financial professional. We suggest you consult with a qualified financial planner and/or insurance professional who is most qualified to consult with you regarding policy decisions. Many factors are involved in your policy premium and approval; some of which may not be mentioned in this article. Federal laws and guidelines change frequently and any changes to these programs may not be reflected in this article. We are an affiliate of the Bankrate Insurance Network.

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