This week on The Chelsea Krost Show, tax and small business expert Ebong Eka helped us to demystify some of the issues and facts surrounding ObamaCare and Millennials. He spoke about the 3 C’s of Obamacare.
The Affordable Care Act, also known as Obamacare, has taken a legislative and political beating. Many political pundits believe the Obamacare is a raw deal for Millennials. As if Millennials didn’t have enough to worry about – shaky job market, no health insurance, and large student loan debt!
According to a US News & World Report article by Bob Graboyes, younger, healthier Americans are required under Obamacare to overpay for their insurance so that older, sicker and (by and large) wealthier Americans can underpay for their insurance. This could explain why the Obama Administration initially focused on marketing to a younger demographic. The older population, comprised of Generation Xers, has Medicare while the poor have Medicaid.
The reality is, that’s how most of life works. Car insurance, government programs, property taxes – the list is endless. Safer drivers pay more money for car insurance premiums to subsidize the costs for insuring worse drivers. Wealthier and/or younger people pay social security taxes today to pay for seniors currently retired. Homeowners pay property taxes that fund local schools despite not having children.
The THREE C’s of Obamacare for Millennials:
1. Ends pre-existing condition exclusions for children – Health plans can’t limit/deny benefits for pre-existing condition for kids 19yrs old or younger
2. Young adults (under 26yrs old) can be Covered under parent’s health plan
3. Insurance companies can’t randomly cancel coverage for an honest mistake.
1. Bans lifetime limits on health plans (Insurance companies used to limit the amount of coverage over the insured’s lifetime in the plan)
2. Insurance companies now must publicly justify rate hikes – more transparency
3. Premiums must be spent on actual health care not administrative costs.
1. Some preventative care can be provided at no cost to the insured. (List of screenings, pre-natal care, vaccinations etc)
2. Choose your own the primary care doctor from your plan. (Big Issue)
3. Removes Insurance barriers to Emergency Services – You can get emergency care at a hospital outside of your health plan’s network
So do you need healthcare?
Three Types of Insurance Options –
A. Private Health Insurance plans
B. Medicaid (must qualify)
C. Job Based Insurance
After Choosing an Option –
1. Preview plans and evaluate estimated costs and savings.
– Visit Healthcare.gov to find your options and review plans
2. How to Apply – Visit HealthCare.gov for information on the Marketplace
a. Paper Application
b. Online Application (Still a nightmare)
c. By Phone – 1-800-318-2596 – 24/7
d. You can also apply with an “in-person” assister
Sources: (Health and Human Services: http://www.hhs.gov/healthcare/rights/)