Here is a list of 10 Obamacare facts about the Affordable HealthCare Act. This list can be used as a quick refresher for those wanting to get a grasp of what the bill entails without reading 1100 pages. These are to quick facts that should help explain Obamacare to the standard individual.
1- Obamacare Fact: Coverage Expansion
It is estimated By 2022, the Congressional Budget Office estimates (pdf) the Affordable Health Care Act will have extended coverage to 33 million Americans who would otherwise be uninsured.
2- Obamacare Fact: Credits and Subsidies
Families living within the poverty level, starting at families making less than 133% of the poverty will be eligible for a subsidy. If you want to calculate if your family size and income level makes you eligible for a subsidy, please use the Health Insurance Tax calculator.
If you are a family of four and make less than 133% of the poverty level, based on the chart above that is $30,657 you will be eligible to be covered by Medicaid, and thus will not have to face a Health Insurance Tax
If you are a family of four and make between 150% -200% of the poverty level, based on the chart above that is $34,575 – $46,100 your Health Insurance Tax will be maxed out at 6.3% of your income. Based on this scenario your health insurance tax will range between $2,178 to $2904 respectively.
3- Obamacare Fact: Taxes for Families
If you are a family of four and make between 300% – 400% of the poverty level, based on the chart above that is $69,150 – $92,200 your Health Insurance Tax will be maxed out at 9.5% of your income. Based on this scenario your Health Insurance Tax will range between $4,356 to $5,809 respectively.
4- Obamacare Fact: Taxes for Individuals
In 2016 If you are an individual who chose to forgo purchasing health insurance on the exchange, or don’t choose your employer provided plan and your cost for insurance is 8% or less of your annual gross income (Cut off line that states your insurance is affordable), there are also other exemptions such as if you’re a member of an American Indian tribe, or if you lacked insurance for less than three months during a year. Based on a 50,000 income and no insurance for more than three months you will have aHealth Insurance Tax of $695 fee or 2.5% of your income which ever is greater. Example; You are 30, and make $56,000 per year, and your insurance cost is $4,480 or less, the law states that you can afford insurance and you are choosing to opt out. You will be required to pay Health Insurance Tax of $695 or $1,400 (2.5% of your income). In this scenario you will pay a Health Insurance Tax of $1400 dollars. The Flat dollar fee starts at $95 in 2014, $325 in 2015, and maxes out at $695 in 2016. Please use theHealth Insurance Tax Calculator to determine eligble subsidy or tax fine amount
Obamacare Fact: Various Myths Explained
5- Obamacare Fact: Taxes Small Business
The Health Care Act states Small businesses that have fewer than 10 employees, average wages beneath $25,000, and that provide insurance for their workers will get a 50 percent tax credit on their contribution. The tax credit reaches up to small businesses with up to 50 employees and average wages of $50,000, though it gets smaller as the business get bigger and richer. The credit lasts for two years, though many think Congress will be pressured to extend it, which would raise the long-term cost of the legislation.
6- Obamacare Fact: Pre-Existing Conditions
The Affordable Health Care Act; States that Health Insurance companies are no longer allowed to discriminate based on pre-existing health conditions. However They are still able to to discriminate based “on various other factors starting with age (limited to 3 to 1 ratio), premium rating area, family composition, and tobacco use (limited to 1.5. to 1 ratio).”
7- Obamacare Fact: Luxury Health Plan Penalty
In order to cap the tax code that provides unlimited deductions for employer-provided health insurance plans. Starting in 2018 the Affordable Care Actimposes a 35% tax on all employer provided health plans that exceeds $10,200 for an individual, and $27,500 for a family. The goal of this plan is to keep health insurance cost down, by capping the tax benefits companies get by shifting funds to health insurance plans, and also limit the amount of money insurance companies will receive from these companies.
8- Obamacare Fact: Medical Loss Ratio
There is now a provision of the Affordable Health Care Act already in place that limits the amount that an Insurance Companies can spend on non-medical care items such as (administration, marketing, sells, etc.) The law requires insurers to spend 80-85% of every premium dollar on medical care items. Anything spent less than that amount will have to be refunded to the customers. This amount is expected to provided a rebate of $1.1 billion dollars in 2012
9- Obamacare Fact: Healthcare Reform Cost
The Health Care Act when fully implemented into law is expected to spend a bit over $1 trillion in the next 10 years. The law’s spending cuts — many of which fall on Medicare — and tax increases are expected to either save or raise a bit more than that, which is why the Congressional Budget Officeestimates that it will slightly reduce the deficit. (There’s been some confusion on this point lately, but no, the CBO has not changed its mind about this.) As time goes on, the savings are projected to grow more quickly than the spending, and CBO expects that the law will cut the deficit by around a trillion dollars in its second decade. Here’s its graph, which covers the period between 2012 and 2021
10- Obamacare Fact: Long Term Strategy
The implementation of the Affordable Care Act is inevitable, but how will its long term success be ensured ? The law is focusing on some key factors to ensure that medical cost remains controllable in the long term through a series of efforts, some of which are currently in place. Some of these measures include Accountable Care Organization, Penalizing hospitals with high rates of preventatives and reoccurring, Medicaid expansion, etc.
Acknowledgments: Some of this information was composed of data from the Kaiser Family Foundation’s summary of the Affodabe Care Act