Health insurance is about saving an insured individual from medical bills during an emergency situation or hospitalization.
According to United States Census Bureau in 2010, there were 49.9 million Americans uninsured. Because of this high number, US government under the President Barack Obama passed and signed a law about Patient Protection and Affordable Care or commonly known as Obamacare in the same year. The primary target of the law is to decrease the rate of Americans who are not yet insured. Moreover, President Barack Obama uses this law to set the bar high when it comes to the healthcare insurance quality and affordability. Together with the law, he signed as well the Healthcare and Education Act that regulate the US health care system. Under this health care bill, hospital and doctors must follow the guidelines regarding molding the medical services’ financial, technological and clinical to achieve better health care results, lower fees and enhance the methods of accessibility.
Because of this high number, US government under the President Barack Obama passed and signed a law about Patient Protection and Affordable Care or commonly known as Obamacare in the same year. The primary target of the law is to decrease the rate of Americans who are not yet insured. Moreover, President Barack Obama uses this law to set the bar high when it comes to the healthcare insurance quality and affordability.
Together with the law, he signed as well the Healthcare and Education Act that regulate the US health care system. Under this health care bill, hospital and doctors must follow the guidelines regarding molding the medical services’ financial, technological and clinical to achieve better health care results, lower fees and enhance the methods of accessibility.
The signed law also allows both the private and public health insurance companies to expand as far as insurance coverage is concerned while lowering its costs. This law emphasized particular system that subsidies, exempts a certain individual or family and grant them to do insurance exchanges based on certain factors.
On June of 2015, the Supreme Court confirmed that the law is now available to District of Columbia and the other 50 Federal States. Because of this, data shows that the rate of Americans who are not yet insured lowers down. In fact, according to Centers for Disease Control and Prevention (CDC), there are 11.4 million Americans who are uninsured in the year of 2015. Moreover, Gallup (Polling Body) presents data showing that there is a continuous drop of uninsured individuals from 18% on the year 2013 to 11% in the first quarter of the year 2016.
During the year 2010 in the States of Nevada, there are approximately 600,000 individuals out of 2.705 million total population who does not have an insurance according to the statistics. After the law was signed and disseminate, the rate of uninsured Nevada’s residents lowers from 23.01 % to 15.21% rate as of 2014.
The Affordable Care Act or the Obamacare health insurance aiming to increase the accessibility of health services, lowering its cost for all American citizens and improve the convenience of medical care across the United States. If you are one of the individuals who wanted to shop for healthcare insurance, you ought to know the benefits that you can get and your rights as an insured person. Here are the few provisions that hold the interests of the consumers.
Here are some.
- Individuals are not allowed to be denied or specified certain premium prices due to gender or any pre-existing illness or condition.
- Hospitals, clinical facilities, and doctors should use an electronic medical document for the patient’s fast and easy access, and to improve the quality of medical services.
- All individuals (with some exemptions) must have a health insurance that meets the minimum qualification to avoid paying the tax penalty.
- All health insurance companies should have the bronze, silver gold and platinum insurance plans, and the price depends on the coverage.
- The consumer is encouraged to participate or provide health strategy report that includes the insurance plan, the coverage and the fees for better health care shopping in the marketplace.
- There should be a fixed process every filing of a claim.
- Preventive measures such as vaccinations and screening check-up are provided to all consumers.
- And companies who have at least 50 or more employees should get a health insurance for each worker or pay the penalty.
What is the Obamacare Penalty?
The goal of the Obamacare law is to enroll all American citizen to health insurance as it values the health restoration and illness prevention. Furthermore, the law covers each American and arranged exemptions to those individuals who are incapable of buying their health insurance due to some factors. On the other hand, there are still people who reject the law and chooses not to have a health insurance which leading them to pay the tax penalty.
The number one rule in the Obamacare Penalty is to require every American to get an insurance unless they are entitled to exemptions. The penalty should drive everybody to acquire health insurance as much as possible. But if you did not qualify for the exemptions and you did not buy any health insurance for more than 90 days starting 2015, then you must need to pay a penalty.
How’s the penalty calculated?
The calculation of the penalty is either to the percentage of the total annual household income or the fixed rate. Every year, the penalty cost increases to keep up with the hike and assist people to buy insurance. In the year 2015, the penalty is 2% and increases to 2.5% in 2016. It is mandated that in 2017, the penalty percentage is not moving up, but the flat rate will be tailored for inflation.
What is Obamacare exemption?
The Patient Protection and Affordable Care ultimately caters people who can afford to get insurance. But if you opt out to get the PPCA insurance, you can have your employer to get that for you or you can choose a private health insurance to cover your hospital expenses. On the other hand, some individuals have difficulties in getting insurance due to financial status and other factors. The government made it clear that once a person or a family qualified to be exempted in not getting any health insurance will not pay the tax penalty as well. The exemption is intended to individuals who have the following conditions or situations.
- The lowest health insurance available in the marketplace is equivalent to your 8% total household income.
- You do not have health insurance for less than three months.
- The religion that you are in rejects the insurance practice.
- Your salary is too low.
- You are inside the prison.
- And you work overseas for more than a year.
Learn more about individual medical insurance plans here.