The Affordable Care Act was created in an effort to make health insurance affordable for everyone living in the United States, including those with a low income. The Act goes into effect in January 2014. At that point, anyone who does not have some form of health insurance will be subjected to tax penalties.
Most people love the idea of affordable health insurance, however, their jubilation has been toned down by the fact that few people actually know how much they will have to pay for their health insurance.
Factors that Impact the Cost of Insurance from one State to the Next
Each state has it’s own method of determining how much the Affordable Car Act insurance policies will cost. There are several factors that come into play. These factors include:
- The number of health insurance companies the state has managed to recruit
- How the state regulates health insurance
- The number of currently uninsured residents who will participate in that state’s program
- The amount of risk the insurance company feels they will be taking by agreeing to insure the state’s residents
Some states have started to reveal how much their residents can expect to pay for health insurance. Everyone has been pleasantly surprised by the fact that the states that have announced the Affordable Care Act insurances rates have been quoting lower prices than originally anticipated. The difference has been significant. For example, in Maryland, the bronze level health insurance plan for a non-smoking, 20 something male will be 33% less than what experts had anticipated. Nevada proudly reports that individuals who take advantage of the state’s bronze insurance plan will be able to do so for less than $100 a month. Current reports indicate that overall, Affordable Care Act health insurance rates are approximately 18% less than originally anticipated.
Things to Consider
When a state announces their Affordable Care Act insurance rates, residents can’t automatically assume the quoted number will be what they pay. Participating insurance companies will carefully examine each person’s unique situation before completing the final invoice. Factors the insurance companies will consider include:
- The age of the individual purchasing the policy
- Whether or not they smoke (smokers will have to pay a great deal more for their insurance)
- How many family members will need to be insured
The Affordable Care Act has been divided into four different plans. People who need to make use of the plan should carefully consider every single pro and con of every plan before they make a final decision. While the bronze plan will cost less each month, it’s important to remember that the out of pocket expenses for all medical services required will be substantially higher. It’s in the best interest of those with pre-existing conditions and individuals who have chosen hobbies and career with a high accident rate should purchase on of the plans that will cost more each month, but also reduce out of pocket expense for medical care. The uninsured needs to remember that there is a good chance that they will qualify for government subsidies to help offset the cost of their health insurance.