1 Million Dollars

Thursday, June 28, 2012

Obamacare and you....

I do try to keep this blog anti-political because I am political enough in the real world but sometimes, politics affects personal economy. And the Supreme Court ruling that the Patient Protection and Affordable Care Act aka Obamacare is constitutional will affect all young people's personal economy.

If you are under 26, great for you, you will still be covered under your parent's insurance, no matter if you are in school or not, if you are single or married, anything. It is all age based now. However, what happens if your parents don't have health insurance or once you age out?

You must find insurance, either through your employer or on the open market. You will have an easier time finding insurance on the open market in 2014 because insurers cannot deny you based on medical conditions. But they can increase the bill way beyond what you can afford, what then? Well you have to find something or get fined. An adult who does not have health insurance by 2014 would be penalized $95 or 1 percent of income, whichever is greater, so long as the amount does not exceed the price tag of a basic health plan. But by 2016, the penalty increases to $695 for an uninsured adult, and up to $2,085 per household, or 2.5 percent of income, whichever is greater.

What if you really cannot afford it? Well it depends. Medicaid is being increased to cover people with 138% of the federal poverty level but that won't cover most people. I made more than that working part time in college. Otherwise, there are tax credits if you are above the 138% cut off but are still low income. But that be enough? For some people, absolutely not, especially if you lose your job. Personally I would still be saving enough in your EF to cover COBRA.

So what is my opinion? I like it but I was one of those who aged out of their parent's plan and was unable to get a private plan for any amount of money. I ended up COBRAing my mom's insurance for a total of $550 per month. Also, this means those who want to retire early but could not because of pre-existing conditions now (well in 2014) can. However, I am betting health insurance costs will go up so plan for a big jump in those costs in near future.


  1. Very significant advice. Indeed, 2014 has a huge impact in everyone's health care obligations so better be prepared.

  2. Let's hope that when 2014 comes, health insurance rates will drop with the increased competition. As a self-employed individual, I'm not sure if I will be able to afford it otherwise. My health insurance now is almost as much as my rent!

  3. Our 2013 rates are DOUBLE the 2012 rates. Now there's no OOP cost for "preventive" visits (WBV for DD and yearly exams for us), but we are paying much much more. I am scared to see what 2014 does.

  4. It's ridiculous that we are forced to buy anything. If I want to take care of myself and cover my own risk, why should the government tell me otherwise? I'm hoping that Obama was a one-term president and everybody will look back at what a disaster Obamacare is/was. But that doesn't help us now with the exorbitant costs.

  5. ND Chic, given that hospitals have to treat you, and that drives up everyone's cost, it makes sense to require health insurance. No one complains that they must get car insurance, so why complain about health insurance. Frankly, everyone will need it at one time or another. It is just one more "EF" people need to have.