The Patient Protection and Affordable Care Act, also known as the Affordable Care Act, PPACA, and Obamacare created medical insurance marketplaces, or exchanges, that are set to open in 2014. These marketplaces are new, and as will new things, there will be many questions asked. Here are a few of the aspects that you will need to know to be able to make a good decision about if the exchanges are for you and your family.
What’s a Health Insurance Marketplace?
A medical insurance marketplace is an on line website where individuals can compare plan designs and premiums from various medical insurance companies. Unlike today’s individual insurance market, where a person must go via an online broker or go shopping for plans independently, the marketplaces may have all the plans on the pc screen facing them. The plans will be easy to learn and understand. Once the decision has been made regarding which plan to enroll in, the particular enrollment can be achieved instantly from the marketplace’s website.
Who Manages the Marketplaces?
The Affordable Care Act is just a law passed by the United States government, however the responsibility of managing medical insurance marketplaces falls to each individual state. However, if your state doesn’t desire to open their particular marketplace, they could defer to the Federal Marketplace.
What this means is that to be able to enroll in a marketplace, an individual will need to visit his / her own state’s exchange, which may be found here.
When Do the Marketplaces Open?
The first effective date of plans purchased on a medical insurance marketplace will be January 1, 2014. However, Open Enrollment begins on October 1, 2013. On that day, individuals will be eligible to purchase a medical plan.
It is essential to see that not all online exchanges will be prepared to roll on October 1. For the reason that case, people will need to enroll via telephone.
What Types of Plans are Available in the Marketplaces?
The exchanges won’t have the same quantity of plans available as an individual insurance company offers outside the exchange colorado health insurance marketplace. However, there would have been a good spread of plan benefits.
The marketplaces will offer 4 degrees of plans. These plans will be called Platinum, Gold, Silver, and Bronze. The Platinum plan will provide richest benefits, followed by Gold, Silver, and then Bronze.
Individuals that want low premiums can choose the Bronze plan, but their out of pocket exposure will be higher compared to the other plans. When someone is willing to pay for high premiums as a swap for low out of pocket risk, they could purchase the Platinum plan.
What Could be the Cost of the Plans?
This is the question that everyone wants to understand the answer to. The expense of the plans will needless to say vary by plan value, but may also vary by state. Insurance companies will be the ones providing the plans, and they will use their underwriting guidelines to develop premiums. The hope is that competition between the firms could keep the fee down.
Is Help Offered to Buy the Premiums?
Some people will be able to get tax credits to greatly help offset the price of an agenda purchased on the exchange. If an individual makes significantly less than 400% of the poverty level and isn’t eligible for Medicaid, they could receive premium assistance. The insurance marketplaces will be able to determine this assistance throughout the enrollment session.
Marketplaces can Ease the Burden of Purchasing Health Insurance
The insurance marketplaces were designed to greatly help people find affordable and comprehensive coverage due to their healthcare needs. Inevitably, some tweaks will need to be made, but all-in-all, the exchanges would have been a great place to get good insurance.