Obamacare – Pro, Cons, Benefits, and Penalties

January 5, 2021 17:41 newlambertagency

You must be familiar with Obamacare by now. But have you wondered how it works or is it beneficial?

If you have, then this blog post is for you. Let’s just dive into it.

What is Obamacare?

Obamacare is an alternative term for the Patient Protection and Affordable Care Act (ACA) of 2010. As the name implies, it was signed into law by then-President Barack Obama to make healthcare more affordable.

Earlier, insurance companies could exclude people with pre-existing conditions. As a result, the people with the greatest health expenses sometimes had to go without insurance or settle for a policy that did not cover a pre-existing condition.

Obamacare has made it possible for people with pre-existing conditions to afford preventive care which in turn has reduced hospital visits and slowed down the rise of health care costs.

How does it work?

When you enroll in a health insurance plan, you typically pay a monthly premium to keep that plan. Obamacare includes subsidies to help lower-income individuals cover the cost of their plans. These subsidies, also known as tax credits, are still in effect in 2021.

Obamacare also provided payments to insurance companies to keep their deductibles low. Although the Trump administration has cut those payments, the law requires companies to continue to keep the deductibles low.

Let’s look at some Obamacare pros and cons

Pros

Apart from affordable healthcare and coverage for pre-existing conditions, Obamacare has the following pros.

  1. Affordable – As already mentioned, Obamacare has made health insurance very affordable allowing more people to get covered. Also, under the ACA, you can’t be denied coverage because of a pre-existing health problem.
  2. There’s no pre-set limit – Earlier insurance companies used to set certain limits on the amount of money they would spend on an individual consumer. Insurance companies can no longer maintain a pre-set dollar limit on the coverage they provide their customers.
  3. More screenings are covered – The ACA covers many screenings and preventive services that usually have low copays or deductibles.
  4. Prescription drugs cost less – Obamacare aims to make prescription drugs more affordable. The number of prescription and generic drugs covered by the ACA is growing every year.

Cons

  1. Higher premiums – Since insurance companies now provide a wider range of benefits and cover people with pre-existing conditions. This has caused premiums to rise for a lot of people who already had health insurance.
  2. Penalty – The main goal of Obamacare is to have everyone under an insurance plan all year round, If you’re uninsured and don’t obtain an exemption, you must pay a modest fine
  3. Higher Taxes – To help pay for the ACA, several new taxes were proposed. This has caused people with higher incomes to pay more tax.
  4. Signing up can be tricky – The ACA website has had a lot of technical problems when it was first launched. This made it difficult for people to enroll and led to delays and lower-than-expected signups.

Obamacare witnesses change almost every year. Just keep a lookout for all the changes and make a sound decision regarding your health insurance coverage.

ACA Health Insurance Plans vs. Healthcare Sharing Ministries

September 16, 2020 12:17 newlambertagency

The individuals who had previously been uninsurable due to poor health or pre-existing conditions received a gift in the name of the Patient Protection and Affordable Care Act in 2010. It brought with it a new era of healthcare for many Americans.

The law proposed a new structure of subsidies intended to help make healthcare more affordable, which presented an opportunity for many to get comprehensive health insurance coverage via their state health insurance portal or its federal counterpart.

The introduction of the ACA health insurance plans eliminated lifetime caps on coverage, meaning you could never get kicked off your plan for getting sick or “run out” of coverage and gave several Americans a chance to finally buy healthcare regardless of their health, employment situation, or income.

While ACA health plans kept made and kept several families happy, another healthcare solution has been gaining popularity over the years – healthcare sharing plans or healthcare sharing ministries. While they aren’t considered “health insurance,” healthcare sharing ministries can be used to reduce the out-of-pocket cost by families who want to share their healthcare expenses with other like-minded families.

Individuals and families who choose healthcare sharing ministries pay a monthly “sharing amount” (read premium) and depending on the program they choose, they can enjoy many of the same perks of traditional health insurance – like discounts on healthcare, limited out-of-pocket limits, and predictable monthly payments.

ACA Plans vs. Healthcare Sharing Ministries: What you should know

Like choosing any insurance, it’s important to weigh the pros and cons before you sign up. We have laid out the pros and cons of both the plans for you to help you make a decision.

Benefits: ACA plans

As already mentioned the most attractive feature of ACA health insurance plans is that there are no lifetime limits or caps. You can buy coverage regardless of your health and subsidies available for those who earn less than 400% of FPL.

Drawbacks: ACA plans

ACA plans are quite expensive and the plans may run on narrow networks. Also, the availability of plans depends on your state of residence.

Benefits: Healthcare sharing ministries

The most appealing feature of healthcare sharing plans is its cost. They’re less expensive and are more cost-efficient than ACA plans. The annual costs and deductibles are low and Families can share their costs with other like-minded families. Also, with this plan, you can avoid the penalty for not having health insurance.

Drawbacks: Healthcare sharing ministries

You need good health to qualify for this plan. It has a lifetime or annual caps on coverage and you cannot use a health savings account.

At the end of the day, the best way to find the right plan for yourself or your family is to look at your unique situation and determine which plan might offer better protection without costing too much or sacrificing your quality of care. After all, it’s your life!