With most of the provisions of the Patient Protection and Affordable Care Act, also known as Obamacare, set to be implemented in 2014, there are many changes in store for young adults. Despite the fact that these changes will apply to every American, there are still many people that are not aware of how this law will affect them. Here are the top 5 ways that Obamacare will affect the life of young people.
Individual Mandate
The individual mandate states that every American must have medical insurance with certain essential benefits. This coverage can come from anywhere, as long as it meets minimum standards of coverage. If someone does not have a medical plan, they will be assessed a tax. In 2014 this tax will be $95, but it will increase each year.
Coverage on a Parent's Plan
Obamacare makes it mandatory for insurers to allow children to be covered on their parent's plan until age 26. This can be a great way to obtain low cost health coverage since it is usually not much of an extra cost to add a child to an existing plan. If another child is already on the plan, there might be a chance the adult child can be covered at no additional cost.
Changes to Group Insurance
An employer is where most people receive their medical benefits. Before Obamacare, employers were able to determine who was eligible for their plan. The Affordable Care Act makes it mandatory for employers to offer medical benefits to all full-time employees. For purposes of the law, a full-time employee is someone who works at least 30 hours per week.
In addition, under Obamacare, a group plan is required to offer a health insurance plan that offers essential benefits and is calculated to cover at least 60% of claim payments.
If that is not enough, employers must offer at least one plan in which employees cannot pay more than 9.5% of their wages in order to participate.
Health Insurance Marketplaces
Obamacare also established health insurance exchanges, which are online marketplaces where individuals and small business can easily and efficiently compare health insurance plans from various insurance companies. The marketplaces will offer plan with different coverage levels to give people options of the plan to choose.
If someone is not offered medical coverage at work, they will be able to obtain a tax subsidy to help offset the premium of an exchange plan if they earn less than 400% of the federal poverty level.
No Pre-Existing Condition Exclusions
Before the Affordable Care Act, insurers could deny coverage based on health status. In 2014, they will not be able to do this anymore. Insurance companies will be unable to deny coverage or base a premium on a pre-existing condition. This means that people with cancer, diabetes, or any other costly diagnosis will be able to obtain health insurance.
Obamacare Will Change How We Look at Health Insurance
These 5 ways that Obamacare will affect the life of young adults are very important, but they are only a portion of how much this law will change how we look at health insurance.
Individual Mandate
The individual mandate states that every American must have medical insurance with certain essential benefits. This coverage can come from anywhere, as long as it meets minimum standards of coverage. If someone does not have a medical plan, they will be assessed a tax. In 2014 this tax will be $95, but it will increase each year.
Coverage on a Parent's Plan
Obamacare makes it mandatory for insurers to allow children to be covered on their parent's plan until age 26. This can be a great way to obtain low cost health coverage since it is usually not much of an extra cost to add a child to an existing plan. If another child is already on the plan, there might be a chance the adult child can be covered at no additional cost.
Changes to Group Insurance
An employer is where most people receive their medical benefits. Before Obamacare, employers were able to determine who was eligible for their plan. The Affordable Care Act makes it mandatory for employers to offer medical benefits to all full-time employees. For purposes of the law, a full-time employee is someone who works at least 30 hours per week.
In addition, under Obamacare, a group plan is required to offer a health insurance plan that offers essential benefits and is calculated to cover at least 60% of claim payments.
If that is not enough, employers must offer at least one plan in which employees cannot pay more than 9.5% of their wages in order to participate.
Health Insurance Marketplaces
Obamacare also established health insurance exchanges, which are online marketplaces where individuals and small business can easily and efficiently compare health insurance plans from various insurance companies. The marketplaces will offer plan with different coverage levels to give people options of the plan to choose.
If someone is not offered medical coverage at work, they will be able to obtain a tax subsidy to help offset the premium of an exchange plan if they earn less than 400% of the federal poverty level.
No Pre-Existing Condition Exclusions
Before the Affordable Care Act, insurers could deny coverage based on health status. In 2014, they will not be able to do this anymore. Insurance companies will be unable to deny coverage or base a premium on a pre-existing condition. This means that people with cancer, diabetes, or any other costly diagnosis will be able to obtain health insurance.
Obamacare Will Change How We Look at Health Insurance
These 5 ways that Obamacare will affect the life of young adults are very important, but they are only a portion of how much this law will change how we look at health insurance.