My agent friends are getting this questions constantly right now.We agents are all asking ourselves the same question….
‘Obamacare’ isn’t a plan or insurance type. It’s the nickname for the Affordable Care Act (ACA) or health care reform. It’s better to some because preventive care services have been expanded and to be provided at no share of cost prior to meeting the deductible, no annual or lifetime maximums on essential health benefits, kids can stay on parents’ plans until age 26 and the most important part, as of January 1, 2014, all plans will be guaranteed issue regardless of pre-existing health conditions.
The drawbacks—all of this costs money. You can’t stick someone with increased rates due to health conditions like now. The only things people can be ‘rated’ on are age, geographic location and smoking, and California passed a law that you cannot ‘rate up’ for smoking. Plans have to offer coverage that pays no less than 60% of estimated costs—those are the ‘bronze’ plans. You keep hearing about the 'metal' plans, here they are--Silver = 70%, Gold = 80% and Platinum plans = 90%. And deductibles can’t be more than $2000. Oh wait, there are bizarre exceptions to that which don’t all make sense.
So in a nutshell, that’s it. Those are the basics of Obamacare. If you have a few hours, I’ll go on…