The Affordable Care Act (aka Obamacare) has been the subject of much discussion over the past 18 months. Regardless of your political affiliation, I think we can all agree that much of the discussion has been generated due to the fact that many parts of the law (and its implementation) are confusing. One main issue of confusion is the subsidy component of the Affordable Care Act. The presentation included in this post should shed a little light on the Affordable Care Act Subsidy component.
Here are some highlights:
- If your household income falls below 400 Percent of the Federal Poverty Level (approx 2/3 of North Carolina Residents), you may be eligible for a subsidy
- You can receive subsidies only if you apply for and purchase individual or family insurance through the Health Insurance Marketplace (aka The Exchange)
- Subsidies DO NOT REDUCE the cost of insurance premiums, they only shift who is paying the bill (you and/or the federal government)
I personally have seen situations where people have benefited (paid less in premium) as well as people who have been hurt by the Affordable Care Act (pay more in premiums). It is understandable, based on your individual situation, that you will like the new ACA Compliant Health Insurance Plans or hate them. What I have noticed is that the TRUE COST of the plans is NOT “cheaper”. The situations where I have seen the total premiums (premium without subsidy) be less expensive have been for people who fall into two main categories:
- Older Individuals (55+)
- The Sick (those with issues that caused current premiums to be increased like – cancer, heart attack, etc
Right, wrong, or indifferent… The Affordable Care Act is here. Hopefully you fall into one of the categories that benefit you financially.