We all hear the term used, but what does it really mean? Obamacare is the term many have come to use when referring to the Affordable Care Act (ACA). This was a complex piece of legislation intended to reform the US healthcare system. Without getting into the politics of it all, here are a few of the key impacts of the ACA:
All individuals are required to have health insurance, and face a penalty if they don’t have minimum coverage
All health insurance plans for individuals (those not on a group employer plan) must meet the same criteria and offer the same minimum benefits
Individuals cannot be denied coverage based on pre-existing conditions
Tax credits (subsidies) are offered for individuals who meet the eligibility criteria based on their income and household size
Healthcare.gov was established to enroll individuals who qualify for a tax credit.
Important to Note: Obamacare is not a specific plan, it's the law and regulations that govern all health plans- whether you purchase on Healthcare.gov with a tax credit, or directly from a private insurance company, or from online brokers like us!
There’s a lot more in the details of the ACA, and it’s likely to be a work in progress in the years to come. However, these basics cover most of the key information for individuals.