Print   RSS

Obamacare: 5 Ways This Bill Is Effecting Your Life

Brionna Kennedy

October 22, 2013

The controversy about the Affordable Care Act, called Obamacare, continues, creating even more confusion about the actual repercussions to business and the economy. A number of important facts can show both the positive and negative sides of this important legislation.

#1 - No Pre-Existing Conditions Exclusions

Pre-existing conditions were generally covered by employer health plans because the risk was spread out over a large number of people, and the healthy members on the plan helped to balance the costs of the sick. However, small employers with only a few people working for them often had difficulty getting plans that would cover these employees at an affordable rate. Obamacare provides a much broader range of people being covered by insurance, which makes it possible to cover people who already have illnesses that must be covered by insurance.

#2 – No Ceilings on Medical Claims

Though the traditional lifetime claim amounts may have once seemed adequate for most people, the development of expensive medical technologies have made these ceiling amounts out of date. It is no longer unusual for people with serious, recurring illnesses to reach their limit within a few years. Of course, raising the ceiling means more payouts for health insurance companies, and so the rule for requiring 80 percent of premiums be paid for actual healthcare instead of administrative cost became necessary.

#3 – Preventative Care Without Out-of-Pocket Expense

Preventative care is the key to good health, as well as to the cost-effectiveness on the delivery of healthcare. The benefits from finding and treating illnesses early will accrue to the entire healthcare system, reducing costs overall. Though this action increases costs on the front end of healthcare, it reduces them further down the line.

#4 – Healthcare Exchanges

The implementation of healthcare exchanges, where people can go to choose and compare health insurance costs may cause some people to choose a plan other than the employer-based health plan for themselves and their families. Having other options available may become a boon to employers who have experienced increasing costs to provide adequate healthcare for their employees. Over the past decade, many employers have begun shifting more costs to the employees, so the exchanges can help both employees and employers.

#5- Higher Taxes For Some Individuals

Much has been said about how Obamacare will affect employment tax to pay for the additional coverage. The fact is that the program requires an increase in Medicare taxes only for those singles who earn over $200,000 or married couples who make over $250,000. Taxes on other workers will remain the same. Click here to learn more about the changes.

 Feedback   Submit Article