Healthcare Professionals

What Does ObamaCare Really Offer?

Since Obama signed the bill in 2010; ObamaCare has been met with debate, disdain and uncertainty. For the wealthy, the added taxes are undesired. For those who can’t afford health insurance, the new plan is welcomed. For small business, they were in the dark about how it will affect them. Now that the rules of ObamaCare have been published by the IRS, light has been shined on the plan. So what does ObamaCare mean for everyone?

ObamaCare and the Wealthy

Obama’s new healthcare reform affects everyone differently. For those wealthy individuals or couples, it means more taxes. Starting January 1st the new hospital tax will require workers to pay a tax equal to 0.9% of wages over $200,000 individually or $250,000 for couples filing jointly. This means if a worker makes $200,000 a year, no taxes will be deducted. However, if the worker is married to a working spouse who makes over $50,000 annually and they file jointly, the new tax will be applied. However, if the couple is unwed and they both earn only $200,000 annually, neither of them will need to pay the tax.

ObamaCare and the Uninsured

The purpose of ObamaCare is to insure the uninsured. Currently over 40% of Americans lack health insurance or are limited by what Medicaid offers. The new plan will expand Medicaid and the government will foot the bill. For others, they will begin shopping for private plans through exchanges and most will receive government assistance to help pay the premiums. Lower income households with children will see a change in the current Medicaid coverage that will offer more coverage without additional costs and will eliminate annual and lifetime caps.

ObamaCare and Small Businesses

One of the largest benefits comes to those who own small businesses. In the past, small businesses have paid an average of 10% of their gross profit to provide healthcare to their employees, often leading to subpar coverage. With the new healthcare plan, small businesses will receive a larger tax break, up to 50% for those businesses with fewer than 25 employees and average salaries of $50,000 or less. This is an increase from the 35% they are currently eligible for. This offers small businesses more incentive to offer healthcare coverage and insures those employees working for small companies.

ObamaCare’s Regulations in Coverage

Obama’s mission was to create a governed set of guidelines for healthcare coverage and banned denying coverage to those with pre-existing conditions. The minimum guidelines, set by the government, differ from the way coverage is currently set by the insurance providers, state regulators and employers. Here is what you can expect :

  • No Limits: Insurance companies are no longer able to impose a lifetime or annual cap on your insurance. This means you won’t have to worry about running out of coverage if you get really sick.
  • No Preexisting Exclusion: Children with preexisting conditions cannot be turned away from coverage. Adults with preexisting conditions will be able to take advantage of a temporary program to help them get coverage. The program expires in 2014.
  • Can’t Be Dropped: In the past insurers were able to drop you if you get really sick. Now that is not allowed. If you get really sick you will continue to be covered.
  • Extension on Parents’ Coverage: Typically a child can be included on a parents insurance plan up to the age of 18. Now that has been extended to the age of 26.
  • Seniors Get More: There has often been a gap in prescription drug coverage for seniors. Now seniors will receive $250 to help close that gap. Eventually the gap will be closed entirely. This means your prescription coverage won’t end once you have spent the $2,700 allotted in today’s coverage.
  • Free Preventative Services: With the new regulations, Medicare will come with a free preventative visit with your primary physician every year. It also eliminates preventative service co-pays.
  • Free Birth Control: Another benefit in the plan is free birth control and preventative services for women to help reduce unwanted pregnancy.

Even with the new regulations announced, there is still speculation that the terms will change in the future. Many of the benefits of the health care law are expensive to carry out, states have the option to opt out of the exchanges, and which benefits get implemented and when is dependent on the budget. Only time will tell which benefits make it and which benefits get cut, however, even a few are better than none.

Drake Newman writes articles for insurance sites and suggests using privatemedicalinsurance.net to get quotes on insurance.