ObamaCare – How it Works

President Obama recently put into act The Affordable Health Care Plan, which will begin in 2014. This Affordable Health Care Plan is often described as ObamaCare and requires all individuals to have insurance coverage. Failure to have health insurance will result in tax related penalties. This insurance requirement is often termed and individual mandate. The type of health insurance plan that you obtain can vary, but you must have some type of coverage once this ObamaCare Act is in place.

The reason for ObamaCare stems from the fact that most Americans already have health insurance coverage. This will result in most Americans not having to change anything in regards to their insurance coverage. However, the 15% of Americans that are not insured must either get health insurance or receive an exemption. Every month that you are not insured will result in a tax penalty beginning in 2014.

In order to make it easier for all Americans to obtain health insurance, many uninsured individuals will qualify for cost assistance through state regulated health coverage. In addition, in 2015 all employers will be required by law to offer health benefits to workers. This will result in more accessible coverage for all Americans due to ObamaCare. However, these changes will not fully take place until 2015, which makes it important to obtain some type of health insurance coverage in the meantime.

Starting in 2014, health insurance will work slightly different due to ObamaCare. You will be required to pay a monthly premium for coverage. Higher premiums will result in less out-of-pocket payments. However, all health insurance plans must offer the same type of benefits, rights and protections to all recipients. ObamaCare is simply making health insurance more accessible for all Americans.

ObamaCare will offer coverage for all essential health benefits and many other innovative or prevention based services. Even individuals with pre-existing medical conditions must qualify for health coverage under the ObamaCare Act. This gives all individuals the same access to rights and protections. Therefore, medical conditions can’t be used as a reason for no coverage. All Americans will have to have some type of health insurance coverage or be prepared to face the tax penalties.

ObamaCare is not officially in place until 2014, but the changes are starting quickly. This makes it important to become informed on all issues relevant to ObamaCare and required health insurance.