The ACA (affordable care act) was designed to reduce the cost of health insurance coverage for people who qualify for it. The law includes premium tax credits and cost-sharing reductions to help lower expenses for lower-income individuals and families. It is important to know the details of the Act so that you can take advantage of this opportunity if you qualify. The Affordable Care Act (ACA) is the most important change in health care in a generation.
This blog was written to help you get the details of the act and how you find an affordable care act for you.
How does the ACA affect you and your family?
Here are some important things to know about the Affordable Care Act.
- The Affordable Care Act gives you access to health insurance coverage regardless of your health status or pre-existing conditions.
- The Affordable Care Act increases access to affordable insurance coverage by prohibiting insurance companies from denying coverage based on current or past health conditions.
- The Affordable Care Act includes premium tax credits and cost-sharing reductions to help lower expenses.
What are these premium tax credits and cost-sharing reductions?
The premium tax credits are an important way to help people afford coverage. If you buy your health coverage through the Health Insurance Marketplace and you qualify for the credit, the amount of the premium tax credit is based on your household income and the cost of a mid-level health plan. The premium tax credits are paid directly to your insurance company. You won’t have to pay back the premium tax credit if you have an income that’s too high to qualify for the credit. That’s different than the cost-sharing reductions.
If you qualify for the cost-sharing reductions, you’ll get a discount on your deductibles and other out-of-pocket costs like copays, coinsurance, and more. For most people, the amount of cost-sharing reductions are based on the cost of a silver plan. But for lower-income people, the cost-sharing reductions are based on the cost of a less expensive plan called a bronze plan. If you qualify for a cost-sharing reduction, you don’t have to pay back the amount of the reduction that you get.
Why is ACA important?
The main purpose of proposing this act was to reduce the cost of health insurance coverage for people who qualify for it. The law includes premium tax credits and cost-sharing reductions to help lower expenses for lower-income individuals and families.
Can you get help paying for my ACA health plan?
You can get help if your income falls within certain ranges. The law sets income limits based on the size of your household. The lower your household’s income, the more help you can get. You qualify for premium tax credits and cost-sharing reductions if your household income is between 100% and 400% of the federal poverty level.
Conclusion
The ACA is a great way to get help paying for your health insurance. The law includes premium tax credits and cost-sharing reductions to help lower expenses for lower-income individuals and families. So by reading this article, you should now understand why the Affordable Care Act is a good thing.