Once the new healthcare reform laws go into effect on January 1st, 2014, you will have several different options for individual health insurance coverage. People currently without insurance are going to be able to choose from a multiple-tiered plan system. This system was designed to help make understanding differences between programs much simpler and easier. All plans using the tiered system were designed to provide the same types of coverage, but cover different percentages of expenses. Levels included in the new system are bronze, silver, gold, and platinum.
To help defray the cost of insurance, individual health insurance coverage premiums may be subsidized with tax credits for those earning between 138 percent and 400 percent of the federal poverty level. For example, if you were 30 years old and earned $25,000 annually, the estimated amount for the sliver plan premium is $261. However, with your estimated tax credits of $117, your actual cost for the premium is reduced to $144. Tax credits are able to be applied immediately to the premiums, instead of waiting until you file your return. In addition, individuals earning less than $15,000 a year could be eligible for Medi-Cal assistance.
Even if you already have coverage through an employer-sponsored program, it is still worth your time to compare this plan, to ensure it satisfies the ten Essential Health Benefits standardized under the Affordable Care Act (ACA). In cases where your employer-sponsored plan costs more than 9.5 percent of your income, or does not provide adequate coverage based upon the ACA standards, you are entitled to find and secure a different insurance plan. If you require a new plan, you do not have to retain your current employer-sponsored coverage.