With the requirement of the Patient Protection and Affordable Care Act (PPACA), also known as Obamacare, that every American purchase health insurance or face a tax, there are many young adults that will be looking to access health insurance for the first time in their lives. There are so many options out there, it can be difficult to choose which is the best way to cover them and their families. With that in mind, here are some of the best ways to access health insurance that is comprehensive and affordable.
An Employer’s Plan
The Affordable Care Act expanded the eligibility requirement of group plans. Under Obamacare employers must offer medical coverage to all of their full-time employees, defined as employees working at least 30 hours per week. If the employer refuses, they will pay a fine.
There are some formulas to determine the hours an employee works, but as long as a worker meets the 30 hours per week mark they will be offered the same coverage options as everyone else.
In addition to being offered coverage, the law requires that the insurance be affordable. An employer cannot charge more than 9.5% of an employee’s monthly salary to access health insurance at the workplace. If more than 9.5% is kept out of a paycheck, the employer will face a fine.
A Parent’s Plan
Another big advantage of Obamacare is the requirement that children be allowed to enroll in a parent’s plan until age 26. Before the legislation was passed it was up to the insurance plan to decide how long children could be covered. Now, a dependent can be enrolled long enough to give him or her time to establish their own means for paying for a medical insurance plan.
A parent’s plan can be an inexpensive way to access health insurance since many employers subsidize the cost of children on a plan. If another child is already enrolled, then there usually is no extra cost to add another.
Health Insurance Marketplaces
Obamacare established health insurance marketplaces, online sites designed to help individuals and small businesses access health insurance with ease. The marketplaces, also called exchanges, will offer 4 levels of plan design from various health insurance companies. The exchanges are the responsibility of each state, and some states have built their own exchange. Some others are sending their residents to a federal exchange.
If someone does not have coverage offered at work, earns less than 400% of the federal poverty level, and purchases insurance on the exchange, they will be eligible for tax credits to help offset the cost of the premium.
If group insurance and the health insurance marketplaces are not a viable option, there is still the possibility of finding individual insurance on your own. There will be some legwork involved, as it is not necessarily easy to sort through plan designs from different companies. However, you will have more options as to which level of insurance plan you would like than you will on the exchange. The coverage bar required to satisfy the individual mandate is not very high, and you can find plans that meet the requirements at a low price, albeit without much coverage.
If you do not want to find individual insurance on your own, you can hire a broker to access health insurance for you.
Before 2014, it was hard for adults in many states to qualify for Medicaid. However, Obamacare expanded Medicaid to make it much easier to be eligible for assistance through this program. Like the exchanges, Medicaid is administered through the states, so check with your state’s Medicaid office for more information.
No Pre-Existing Condition Exclusions
Being able to access health insurance is much easier post-2013 than it was before due to the fact that insurance companies cannot deny coverage to people due to pre-existing conditions. This has made it less complicated to find a quality plan at a reasonable price.