What is Obamacare?

The Affordable Care Act (also known as the Obamacare) is a US healthcare reform law that is designed to revolutionize America by providing affordable access to healthcare and health insurance. Aimed at reducing the expenditure on healthcare, the law contains many provisions, each designed to address different aspects of healthcare in the US.

Some of the core aspects of the ACA are the following:

Offer the benefit of affordable healthcare insurance to the citizens of America.

  • Expand Medicaid insurance to all adults.

  • Provide affordable healthcare to elder citizens and people with long-term disabilities.

  • Expand employer coverage to millions of citizens.

  • Penalty for citizens who do not have coverage.

  • What it means for you

  • Each year, people can obtain coverage through health insurance marketplace during the ‘Annual Open Enrollment Period’.

  • Low income groups will receive subsidies through three forms: Premium Tax Credits (PTCs) for reduced premium costs, Cost-sharing Reduction Subsidies (CRSs) for reduced out-of-pocket costs and both Medicaid and CHIP.

  • Reforms to Medicare that includes increasing benefits, rights and protection of citizens who apply for insurance.

  • Reforms that enable small businesses with less than 25 full-time employees and $25,000 in annual wages to avail subsidized medical insurance for employees.

  • Individual mandate that require you to have coverage or pay a fee.

  • Exemptions

    Short List of Common Obamacare Exemptions that ensures you don’t have to pay a penalty is as follows:

  • You got covered during open enrollment either inside or outside the Marketplace

  • You went less than three months without coverage

  • You don’t have to file taxes because your income is below the tax filing threshold

  • Coverage would cost more than 8.13% of household income per person (adjusted for inflation each year)

  • You got denied Medicaid or CHIP (your state didn’t expand Medicaid, and you made 138% FPL or less)

  • What else do I need to know?

    Some of the less talked about but high-impacting changes brought upon by Obamacare are the elimination of pre-existing conditions and gender discrimination. No one can be charged more or be dropped from their health insurance coverage for health or gender-related reasons. The reforms brought by Obamacare expands Medicaid to over 15 million previously uninsured Americans. Mostly, this new health care law aims to reform the healthcare industry by cutting out waste, reallocating government funding, fixing what doesn’t work, and most of all, ensuring affordable healthcare for Americans.

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