How does Obamacare work?

How you and your family gets to benefit from Obamacare.

To know how you get to benefit from Obamacare, you will need to know how Obamacare works. To register for Obamacare, you need to enroll in an ACA compliant healthcare plan during open enrollment period. You must keep your current plan or obtain health insurance and maintain it throughout the year or you will have to pay a penalty, unless you qualify for an exemption.

How healthcare works under Obamacare.

There are many ways to get healthcare that counts as minimum essential coverage. These health plans can be purchased through a broker or directly from a provider. It can also be bought through your state’s official online health insurance marketplace (also known as a health insurance exchange). Given the available choices, it is best to explore all available options before the Open Enrollment period deadline so that you can apply on time. is the official marketplace for health insurance and is the only place you can get cost assistance. Some states set up their own official marketplaces.To use the marketplace, you must sign up during the annual open enrollment period. You can find information about signing up for other insurance types here.

Healthcare Plans and Cost Assistance

In the marketplace, the healthcare plans also called “metal plans“are: Bronze, Silver, Gold, or Platinum. The more precious the ‘metal’, the better benefits you receive with bigger coverage and wider network. However, such plans will have higher premiums. Under ACA act, all healthcare plans must provide atleast ten essential benefits as part of their covered benefits.

When you fill out an application, you’ll find out if you qualify for cost assistance. Out-of-pocket assistance, known as a Cost Sharing Reduction (CSR) subsidy, is only offered on Silver plans to those making between 100%-250% of the poverty level. Tax Credits for lower premiums cap the percentage of household income your plan can cost but are based on the second lowest-cost Silver plan in your state’s marketplace. Tax Credits can be paid to your insurer in advance to lower your premium or can be a deduction from your Federal income tax returns.

There are many new benefits, rights, and protections that help consumers. Subsidized health insurance is available to Americans who earn under 400% of the Federal Poverty Level. Moreover, many states are expanding Medicaid. Americans under the ACA can’t be denied insurance based on health status or be dropped when they are sick. Lifetimes maximums have also been abolished.

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