Understand 8 important facts about Obamacare and health care reform. Get the Money Girl book at http://MoneyGirlBook.com
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325 MG What Is Obamacare? 8 Facts Everyone Should Know
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If you follow the news, you've heard the term Obamacare a lot lately. No matter if you're uninsured right now or have health coverage through an employer, everyone should get to know what health care reform really means. In this episode, I'll cover eight facts about Obamacare, so you understand how it will affect your health and your taxes. Obamacare is a nickname given to a bill that passed in 2010 and was signed into law by President Barack Obama, hence the nickname. It's actually called the Patient Protection and Affordable Care Act, and it's a whopping 2,572 pages long. What many people don't realize is that the law covers a lot more than just health care issues. Here are eight major facts about what's really in the law and how it will affect your health and personal finances. Fact number one, you're legally required to have health insurance. One of the most controversial parts of the Affordable Care Act is called the individual mandate. Starting in 2014, the federal government will require most Americans to buy health insurance. You must provide documentation such as a receipt or form W-2 with your tax return to prove that you're enrolled in a health plan. Otherwise, you'll have to pay a tax penalty of $95 or 1% of your gross income, up to $285, whichever is higher. But this reasonable penalty gets steeper in 2015 and 2016, going as high as $695 or 2.5% of gross income to a maximum of $2,085. Fact number two, you must have a qualified health plan. When the government says you must have health insurance starting January 1, 2014, they don't just mean any health insurance. In order to avoid the tax penalty, you must have a certain type which is called a qualified plan. No matter if you get insurance through work or on your own, a qualified plan must cover the following 10 essential benefits. Hospitalization, outpatient care, emergency services, laboratory services, preventative care, prescription drugs, maternity and newborn care, pediatric care, rehabilitative services and mental health and substance abuse treatment. Fact number three, unhealthy consumers can get insurance. Starting in 2014, it will be unlawful for an insurance company to deny coverage or raise health insurance rates based on your health. If you have any pre-existing conditions, such as diabetes, cancer or hypertension, you'll be able to get health insurance. Fact number four, young adults have more options. Parts of the Affordable Care Act have been slowly rolling out since it was passed. One of the first was the law that children and young adults up to age 26 can now be insured on their parents' health plan. This is an option unless you're offered an affordable health plan through an employer. Fact number five, there are no caps on benefits. Insurance companies can no longer put a dollar limit or cap on what they'll pay out for medical costs over your lifetime. The new law also faces out annual caps on payouts in 2014 and 2015. If your health treatment costs and ensure millions of dollars each year, they're required to pay it and never hike your rate. Now that we're in Q4, it's a good time to start thinking about making memories with the people you love most before the end of the year. We put a lot into the time we spend with our loved ones, so you want to extend that care, comfort and peace of mind to what happens when you're gone. 41% of people don't have the life insurance coverage they need. Policy genius makes finding and buying life insurance a breeze. With Policy Genius, you can find life insurance policies at start at just $292 a year for a million dollars of coverage. And some options are 100% online and let you avoid unnecessary medical exams. Policy Genius combines digital tools with the experience of real licensed agents. You can compare quotes from America's top and shores side by side for free with no hidden fees. They have an amazing licensed support team that helps you get what you need fast so you can get on with your life. They answer questions, handle paperwork and advocate for you throughout the process. Policy Genius is the country's leading online insurance marketplace. And even if you already have life insurance through work, remember it may not protect all your family's needs or follow you if you leave your job. So save money and time on providing a financial safety net for your family. Head to policygenius.com or click the link in the description to get your free life insurance quotes and see how much you can save. That's policygenius.com. I love learning and anything that makes learning easier. If you're a parent and your child needs some homework help, then Ixcel is a right for your family. Ixcel is an online learning program for kids covering math, language arts, science and social studies. Ixcel has interactive practice problems for topics from pre-k to 12th grade and everything is organized by grade and subject. As kids practice, they get positive feedback, awards and explanations for wrong answers. Ixcel figures out what your kids need more help with and recommends more topics to practice. Their videos, lessons, sample problems and learning games too. One subscription to Ixcel gets you all subjects and all grade levels. Membership started just $9.95 a month. It's no wonder Ixcel is used in 95 of the top 100 school districts. I think the positive feedback that Ixcel gives is really crucial when it comes to learning. So make an impact on your child's learning, get Ixcel now and money girl listeners can get an exclusive 20% off Ixcel membership when they sign up today at ixl.com/moneygirl. Visit ixl.com/moneygirl to get the most effective learning program out there at the best price. At Capella University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. A different future is closer than you think with Capella University. Learn more at Capella.edu. Fact number six states must have a health exchange. The Affordable Care Act requires every state to establish a health insurance exchange or marketplace where consumers can shop for qualified plans. They must include a website, a toll-free phone number and a local office in case you need in-person assistance. Different insurance companies can offer plans with the same 10 essential benefits that I previously mentioned in bronze, silver, gold and platinum versions. A platinum plan will cost the most but cover 90% of your medical bills. Bronze on the other hand will cost less but only cover 60%. Fact number seven, even the middle class can get tax subsidies. Anyone who doesn't get health insurance through Medicare, Medicaid or an employer can get insurance through an exchange. Depending on your income, family size and residency status, you may qualify for financial assistance from the government in the form of an upfront tax subsidy. And even if your employer offers coverage but it costs more than you can afford, you may still be eligible for financial help. A tax subsidy is paid directly to the insurance company and reduces the health insurance premium you have to pay. They're available to every American who earns up to 400% of the poverty level. That means a family of four can earn up to approximately $92,000 per year and still get government assistance. Fact number eight, there are loads of new taxes. Making sure that every American has access to good affordable health care is a worthy goal but an expensive one. So it probably won't surprise you to hear that taxes have gone up to pay for it. There are about 20 new taxes or tax increases in the Affordable Care Act. One of the biggest is a hike in the Medicare tax deducted from your gross paycheck. This will affect high earners who are defined as individuals making more than $200,000 and families making more than $250,000 per year. Another tax for high earners includes a new investment income tax. And for everybody, there will be fewer allowable medical deductions, reduced tax-free contributions to medical savings accounts, plus taxes on tanning salons, medical devices, pharmaceutical companies, and health insurance companies. For more information about health care reform, you can visit healthcare.gov. And I'd love to get your questions about Obamacare. You can send them to me at money@quickanddirtytips.com. For more money tips and advice, be sure to follow me on Facebook, Twitter, or Google Plus. Also, please sign up for the free Money Girl newsletter for exclusive tips. You'll find links to everything I've mentioned and a transcript of this show on the Money Girl page at quickanddirtytips.com. Just look for episode number 325 called "What is Obamacare?" 8 Facts Everyone Should Know. Also, one more thing, quick and dirty tips very own grammar girl has a new fun word game app for iPad called Grammar Pop. It helps adults and children of all ages master parts of speech like nouns, verbs, germs, and participles. Grammar Pop has 14,000 words and 28 difficulty levels to help you become a Grammar guru. It's just $1.99 at grammarpop.com or in the iTunes app store. I'm glad you're listening to change. That's all for now. Courtesy of Money Girl, your guide to our richer life. At Capelli University, learning the right skills could make a difference. That's why our business programs teach you relevant skills you can take from the course room to the workplace. 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