Obamacare has arrived and enrollment has started today, October 1st. As with anything new, there have been some issues with the exchanges but we are ready and prepared to assist you with your questions. If you or a family member need assistance, please call us at 800-362-2809. Our staff members are certified ACA enrollers and can assist you with questions and the enrollment process.
Most of the questions we are receiving deal with the amount of the subsidy the federal government will provide. While we have prepared a lengthy answer below……, you can access the subsidy calculator on our website at www.getagreatquote.com (front page), or call us.
Exchanges & Premium Subsidies
One of the main features of ObamaCare is the creation of a new federally-financed health care entitlement that will subsidize the insurance premiums for low and moderate income Americans, beginning in 2014. The amount of the subsidy is inversely related to family income and will be a administered by new state-based ”exchanges” that will replace today’s small group and individual markets for health insurance.
Exchanges
ObamaCare creates new entities in every state through which individuals buying insurance on their own must purchase their government-approved insurance. In addition, many small businesses employees will get their insurance through the exchanges as well because their employers will not offer coverage to their workers under ObamaCare’s rules for employer participation (see “Employer Mandate”).
Premium Subsidies
Households with incomes below 400 percent and above 133 percent of the federal poverty line (FPL) who are enrolled in insurance plans offered through the exchanges are eligible for premium assistance financed by the federal government (Medicaid will cover families with incomes below 133 percent of FPL). In 2010, the FPL is $22,050 for family of four. The new law establishes a sliding scale of assistance based on limitations on required family contributions to the cost of coverage. For instance, at 150 percent of FPL in 2014, ObamaCare limits the amount that such households must contribute toward their health insurance premium to 4 percent of their annual income. At 400 percent of the FPL, households must contribute 9.5 percent of their income toward insurance premiums. Whatever portion of the total health insurance premium for their coverage is not paid by these households is covered by the new federal premium assistance program.