Self Employed Health Insurance Plans And The Affordable Care Act

Self Employed Health Insurance Plans And The Affordable Care Act

If you are currently looking for a health insurance plan and you are a U.S. Citizen, it would do you good in your choice of insurance plan to know first about The Affordable Care Act.

The Care Act is something even a self employed person should consider, as a self employed health insurance plan.

What Is The Affordable Care Act?

According to the U.S. Department of Health & Human Services,

“In March 2010, President Obama signed comprehensive health reform, the Patient Protection and Affordable Care Act (ACA), into law. The law makes preventive care—including family planning and related services—more accessible and affordable for many Americans. While some provisions of the law have already taken effect, many more provisions will be implemented in the coming years.”

In this video President Obama talks about The Affordable Care Act.

To help citizens comply to The Affordable Care Act, the Health Insurance Marketplace will be open for enrollment beginning October 1, 2013. The Marketplace has been designed to simplify the process of finding health insurance plans. Taking from healthcare.gov,

“The Marketplace is a new way to find health coverage that fits your budget and meets your needs. With one application, you can see all your options and enroll.”

How Does The Affordable Care Act Affect the Self Employed?

self employed health insurance deduction

The reform in the health insurance market has its own positive and negative aspects.

If you decide to take advantage of it as your self employed health insurance plan you should be aware of the pro’s and cons.

Let us take a look on some of them.

“One of the positive aspects of all this is insurance market reforms. You can’t be denied coverage because of your health status; even how much you pay for coverage is controlled to some extent. That means that people who were priced out are going to be entering the market, and those aren’t going to be the healthiest people for the most part. That’s going to make things more costly for the rest of us.

To offset that cost, the Obama administration is really focused on young adults—getting healthy people between 18 and 35 to purchase coverage through the exchanges. But one of the most popular parts of the law was allowing parents to keep their children on their insurance plans until they’re 26, and a lot of the time, that’s going to be cheaper than buying coverage on the exchanges. So if you’re counting on young, healthy people going into the exchanges, you’re talking about people who are older than 26. Meanwhile, the penalties for not buying insurance are so low—$95 or 1 percent of your income.”

- via businessweek.com.

Complying to this law has many benefits but it would also cost people more. This is because, as part of the law’s requirements, people should buy health insurance plans ifthey are employees or self employed. These insurance plans should be able to meet the minimum coverage set by the law. Otherwise, they will have to pay the penalties. Thus, in The Affordable Care Act, people will get better insurance coverage but they will have to pay for it.

What To Do Now?

It is advisable that you start learning about this law now and check how you will be affected by it. If you have an existing insurance plan, you must check with your provider if your health insurance plan qualify to the minimum coverage requirements set by the law. Otherwise, you will now have to start evaluating your options and purchase a qualified health insurance plan. You could find your options through the Marketplace which will be open for enrollment starting this October 1, 2013.

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