Lisa Judd | July 8 2013 9:55 EDT
ForexTV.com (New York) by Lisa Judd
Obamacare is aimed to reform health insurance and the health care system. It is suppose to offer affordable healthcare to Americans but what will it cost us. Obamacare will require all Americans to have to purchase healthcare or pay a penalty. Under the new law low to middle income Americans will receive subsidies to help cover the cost of health insurance. Those who cannot afford health care will be able to apply for Medicare or receive tax credits.
Obamacare covers preventative care, and will no longer allow insurance companies to deny anyone due to a pre-existing condition, or drop them due to an illness. Obamacare will have different levels. Bronze, Silver, Gold, and Platinum and will cost the average American between $4500 and $5800 a year. The cost will depend on where you are purchasing, your income, health status, and which level you purchase.
Bronze is the basic coverage and will cover about 60% of out of pocket expenses and offers basic coverage. Silver will cover about 70%, Gold 80%, and Platinum will cover 90% out health care costs. The higher end plans will also have a 40% excise tax to help pay for the program.
If you are eligible for assistance making less than 400% of the federal poverty level an annual income of $11,170 in 2012 you will pay less by receiving tax credits. This could be as low as 2% of the person’s income. Low income families will still be eligible for Medicaid/Medicare.
When purchasing insurance through Obamacare the applicant must realize they are still purchasing private insurance. Obamacare will regulate private insurance companies, but the cost can vary. You will have the opportunity to shop around and see what various plans cost. The consumer must decide what plan and with what company. If they don’t they can choose to pay a penalty.