The Affordable Health Care Act takes effect on January 1st, 2014. Under this Act, most people are required to have health insurance coverage, either through plans obtained on their own, or one sponsored by their employee. Employer-sponsored plans should be updated to ensure they cover the 10 Essential Health Benefits, such as prescription drug coverage, doctors’ visits, and prenatal care. In the event your current employer plan does not include all 10 of the benefits, or if you are paying more than 9.5 percent of your income for coverage, you do have the option to look for an individual plan.
You are able to learn more information about individual and family plans through the California Health Insurance Coverage Exchange. The Exchange is a valuable resource containing detailed information about what benefits you are able to receive with a new plan. Further, you can discover if you qualify for any tax breaks, subsidies, and other incentives to reduce your premium costs.
For example, individuals who earn between 138 percent and 400 percent of the federal poverty level could qualify for a subsidy to help pay for their coverage. The amount of the subsidy is based upon several factors, including your income and number of dependents. Instead of having to wait until the end of the year to receive the subsidy, it is applied immediately to the cost of qualified health plans. In addition, certain individuals and families might be able to receive free coverage with no cost. The California Health Insurance Coverage Exchange does have access to a tax credit calculator to help you determine your estimated premium costs.