St. Louis, Mo (PRWEB) October 22, 2013
ObamacareInsuranceOptions.Com, a platform to simplify and educate consumers and small companies about the different options they have under the approaching healthcare initiative, offers an analysis of the insurance premium Costs associated with the Affordable Care Act.
“The pricing for individuals and families is now available and the cost of health insurance under Obamacare is going up, yet becoming more affordable at the same time,” said Tim Teicher, President of OIO, Inc. and Creator of ObamacareInsuranceOptions.Com. “It is called the Affordable Care Act, not the Less Expensive Care Act, and the reason it can be both more expensive and affordable is the federal subsidy.”
Teicher’s analysis, explained below, details why insurance costs have increased under Obamacare and yet will be made more affordable to millions through the Federal Subsidy.
The cost formula of the Obamacare plans is quite simple to the consumer. It will be based on only: What plan you select; how old you are; where you live, and whether or not you use tobacco. The price of a family will be the price of the individuals that comprise the family based on those 3 things – up to 3 kids. Meaning if a family has 3 kids or 8 kids the price will be the same. All Major Medical health insurance plans available beginning in 2014 will be Obamacare plans that are sold at four different plan levels: Bronze, Silver, Gold and Platinum. Bronze is least expensive Platinum is most expensive.
Teicher offers the top four reasons health insurance is more expensive under Obamacare:
1. Insurance premiums are based on the collective health of the pool of consumers. Under Obamacare there are no longer pre-existing condition exclusions or riders. In the past if you had a critical illness an insurance company could decline to cover you. Also, along with the removal of Pre-X exclusions, they can no longer even ‘rate you up’ or charge you more than anyone else your age. Adding people with cancer, heart disease, AIDS and other expensive conditions is the largest contributor to increased costs.
2. There are new coverage’s that have been added by Obamacare like free Doctor wellness visits (check-ups), and free preventative healthcare and tests such as mammograms and pap smears for women; colonoscopies for men and pediatric dental and vision for kids.
3. There are also lots of new mandated coverage’s in Obamacare that are currently optional in the individual health insurance market; Things like maternity coverage and mental health which would include drug and alcohol treatment centers. These services will no longer be optional in 2014, as they are considered: ‘essential health benefits’ and are mandated into Obamacare.
4. Age Banding—Insurance companies under Obamacare are required to charge no more than 300% more for a 64 year old compared to a 21 year old for coverage. Currently the premiums for a 64 year old are 6 times higher than a 21 year old. Insurance companies, knowing people in their 60’s are much more likely to have health issues, cannot afford to lower the rates of older adults very much in order to meet the 3:1 ratio. The result is younger people will be paying as much as triple the current rates, under Obamacare.
Right now, until the end of 2013, healthy or somewhat healthy people can still get a Major Medical health plan without some or all of these options and mandates, for the significantly lower rates and keep the plan and the lower rates until December of 2014. Some carriers anxious to get healthy people signed up now will lock in your rate for the full 15 months. If you have or get this current style of major medical plan there is no Individual Mandate penalty for 2014. “Basically, you get a free pass to opt out of Obamacare for 2014 but you must act soon,” continued Teicher.
Americans have until March 31, 2014 to consider their options for healthcare coverage. For more information visit http://www.ObamacareInsuranceOptions.com.
ObamacareInsuranceOptions.com is a great starting point for consumers and small businesses to get educated about Obamacare and all of the options and coverage strategies available to them. The website connects the public to the Federal Marketplace, with top rated insurance carriers, and experienced, licensed agents and brokers whose services are free and continue even after they sign up. For those not receiving or wanting a subsidy, the brokers show consumers the vast majority of Obamacare plans that exist outside of the State or Federal Marketplace, with better, broader networks.