Healthcare Reform FAQ

Q&A:

1. Who does healthcare reform effect?
2. When does healthcare reform go into effect?
3. Will I get any benefits from healthcare reform?
4. Is the government forcing me to buy health insurance?
5. Will my taxes go up?
6. What if I can't afford health insurance?
7. What is the Healthcare Exchange?

1. Who does healthcare reform affect?
The short answer is everyone.
Healthcare reform is also known as the Patient Protection and Care Act (PPACA), Affordable Care Act (ACA) or simply "Obamacare".
It affects tax payers, doctors, hospitals, insurance companies, small and large businesses, individuals, and families.
Return to Top of Page

2. When does healthcare reform go into effect?
In 2010 when the law was originally passed some changes occured such as the ability to keep your dependents on your policy until age 26.
The bulk of the changes will occur on January 1, 2014 such as subsidies for low income people, and the individual mandate to buy health insurance. Also, you can no longer be denied health insurance because of a pre-existing condition.
On October 1, 2013, you can start enrolling in the new plans.
Return to Top of Page

3. Will I get any benefits from healthcare reform?
The most important benefit is that no one who applies for health insurance can be denied because of a pre-existing condition, and no one can have their health insurance taken away from them because they get sick. Also, people who can't afford health insurance may be eligible for subsidies.
Return to Top of Page

4. Is the government forcing me to buy health insurance?
Healthcare reform does include what's called the Individual Mandate. With very few exceptions, anyone age 18 or above will have to buy health insurance or pay a penalty. In 2014, the penalty is not very big ($95 or 1% of your Gross Income) but it will grow in the coming years.
Return to Top of Page

5. Will my taxes go up?
Individuals with an income above $200,000 a year will pay some additional taxes. Anyone who does not purchase health insurance will have to pay a penalty (tax) for not having it.
If you are low income, you will likely be eligible for subsidies to pay for some of your health insurance costs.
Return to Top of Page

6. What if I can't afford health insurance?
If the government determines you are low income according to the new healthcare reform law, then you may be eligible for partial subsidies. Low income is defined as an individual making less than $44,000 a year or a famiy of 4 that makes less than $92,000 per year. The lower your income is, the larger your subsidy will be.
If you make under $11,000 per year, then you are eligible for Medi-Cal which is the California version of Medicaid.
Return to Top of Page

7. What is the Healthcare Exchange?
The Healthcare Exchange is a marketplace for different health insurance plans. Covered California is the name of the new individual health insurance exchange in this state.
Return to Top of Page

Disclaimer: I am an independent health insurance broker, not an agent of, or affiliated with, any state or federal government organization. This information was collected from many sources such as Healthcare.gov, CoveredCA.com, HHS.gov, California Health and Human Services Agency (CHHS), California Health Benefit Exchange, and various health insurance company websites. This information was collected as of February 26th, 2013. More laws and regulations could change in the future.