Under the Affordable Care Act, Californians and all Americans will be required to carry health insurance or pay a penalty as of 2014, with some exceptions. Ultimately, the Affordable Care Act is intended to provide comprehensive and affordable coverage for everyone. Individuals seeking coverage under Covered California cannot be denied coverage due to preexisting conditions and several preventive services must be covered under the new law without cost sharing.
Whether the new health care law will increase California health insurance rates is a complicated question. Premiums may increase for some and decrease for others. Covered California, the state’s health insurance exchange, recently announced that individual plan rates offered through the exchange will range from 2 percent above to 29 percent below the 2013 average premium for small employer plans.
Rates may be significantly higher for individuals who do not qualify for a subsidy, however. This is especially true for young people because of restrictions under the new law about the gap between what insurers can charge older versus younger people. In order to understand how the new law will affect you it is important to consult with a health insurance expert.
Millions of Californians are currently without health insurance, and the reasons for this are varied. Some individuals aren’t offered health insurance through their employer and can’t afford an individual plan. Others can’t afford the out-of-pocket costs of their employer-sponsored plan, while others are unemployed and do not qualify for Medical. Some may simply elect not to have coverage at all, even if it is within their budget.
The new law is designed to make coverage affordable, whatever a person’s income level. Individuals who make between 100% and 400% of the federal poverty level may be eligible for a tax break or subsidy to help pay for the cost of coverage.
Get Expert Help
For most people, deciding whether to purchase insurance inside or outside the exchange will come down to cost. The new law is complicated, making it especially important to seek the help of a health insurance expert to determine the most cost-effective approach. This is especially true if you are a business owner. Benefit Packages will be an Exchange Certified Agency that can help you weigh your options and get the best coverage available. Contact us for expert help at 1-800-356-3615, or visit our website for a California health insurance quote.