What Is Obamacare in Health Insurance?
<lingo>Obamacare is the informal name for the Affordable Care Act. The name references the former president because he was the driver behind the new legislation. The idea behind Obamacare is to give people access to low-cost healthcare based on income levels, family size, and location. Obamacare also financially penalizes those who opt out of healthcare. The government set up an insurance marketplace where people could choose between different plans for lower rates than a standard private insurer. Recently the financial penalty for those who have no health insurance was removed by the new administration, but Obamacare plans are still available for those who want the negotiated rates.</lingo>
Obamacare was meant to be a solution for everyone in the US to protect them in case of a catastrophic event. For the most part, people without health insurance are still required to pay for their medical bills. This means that if they have an emergency and can't settle their expenses, they may be forced to put the charges on high-interest credit cards or declare bankruptcy if they can't keep up with their payments. Insurance is often the only way for people to keep their finances stable — especially if they have a serious chronic condition (e.g., diabetes, cancer, etc.).
<twitter>Obamacare is the informal name for the Affordable Care Act. The name references the former president because he was the driver behind the new legislation. </twitter>
For those concerned about cost, the bronze plan is the most affordable plan available through Obamacare. This level of care provides major medical expenses only, meaning you'll need to spend thousands of dollars on your out-of-pocket maximum before your insurer will begin to pay any of the bills. Medicaid may be available to low-income earners who qualify, but not every state offers these benefits (nor are they required to).
Obamacare has been a controversial idea both for politicians and insurers alike, and many professionals didn't agree with the underlying principles of the laws. This has led to higher rates among insurance companies in some areas of the country. And while the Obamacare rates still tend to lower, the basic level of care may not be worth choosing an Obamacare plan for its price.
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