The ACA made important changes to the way many people are able to access health care. For example, before the ACA, 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 their condition. Because they couldn’t afford regular doctor visits, they often ended up in hospital emergency rooms, unable to contribute to the expense of their treatments.
How Obamacare Works
The ACA’s primary goal was to slow the rising cost of health care by taking steps to make health insurance more available and more affordable to those who need it the most. The act also required everyone to carry health insurance or pay a tax penalty, but that provision ended in 2019. The ACA also aims to make health insurance more affordable for those with the lowest incomes by subsidizing the cost. Medicaid was extended to those who earn up to 138% of the federal poverty level, but as of 2022, 12 states have elected to not expand Medicaid, limiting accessibility for their residents. Located mostly in the South, the states are:
AlabamaFloridaGeorgiaKansasMississippiNorth CarolinaSouth CarolinaSouth DakotaTennesseeTexasWisconsinWyoming
The poverty level usually increases each year to keep up with inflation. Those who earn too much for Medicaid receive tax credits if their income is less than 400% of the poverty level. The credit is applied monthly rather than as an annual tax rebate. They also pay reduced co-payments and deductibles.
Do I Need To Pay a Penalty?
To ensure that insurance companies could afford to add patients with pre-existing conditions, the ACA initially required everyone to have health insurance for at least nine months out of every 12 or be subject to a tax. In December 2017, Congress repealed the penalty with the Tax Cuts and Jobs Act. The penalty no longer applies to tax years past 2018. Even before that happened, many groups had successfully petitioned Congress so they could be exempt from Obamacare. By removing the mandate, Congress effectively required insurance companies to take patients with pre-existing conditions while potentially removing healthier patients, thus increasing costs for the insurance companies. Since the subsidies remain in place, Congress also made sure the government would pick up a percentage of the rising costs.
How Much Are Obamacare Taxes?
Even though the mandate no longer applies, there are still some taxes related to Obamacare:
If you make more than $200,000 per year: Taxes increased in 2013 for individuals making more than $200,000 per year or $250,000 for married couples, some health care providers, and other health-related businesses.If you’re a business owner: If you have 50 or more employees, you must provide insurance to at least 95% of full-time employees or pay a fine.
How To Get Obamacare
Even though Congress cut off one of the legs supporting the ACA, you still can take advantage of the parts that work.
Health Insurance Exchanges
The health insurance exchanges are open for enrollment from Nov. 1 to Jan. 15 each year. If you miss the window, you still can use the exchanges to buy interim private insurance or apply for Medicaid. You also can use them to compare plans for the future.
What Does Obamacare Cover?
Under the ACA, insurance plans must allow parents to include their children on their plans up to age 26 and provide 10 essential services:
