ObamaCare Health Plans

Last Updated on Jun 3rd, 2014 | By | Category: Healthcare in US, ObamaCare

ObamaCare Health Plans



On March 2010, President Barack Obama signed an affordable health care act, which is now known to many as ObamaCare. If you would like to know more about this health care plan, you can go ahead and read about these frequently asked questions and facts about ObamaCare.

  • The Official Name of the ObamaCare Health Plans

PPACA or Patient Protection and Affordable Care Act is the official name of the ObamaCare Health Plans. It can also be called as Health Care Reform or ACA, which stands for Affordable Care Act.

  • What is the ObamaCare Health Plans all about?

In a nutshell, the ObamaCare Health Plan aims to provide access to more Americans in terms of quality and affordable health insurance. It also aims to decrease the health care spending in the United States.

The ObamaCare makes sure that it expands the quality, affordability, as well as the availability of public as well as private health plans. This is done through regulations, consumer protections, taxes, subsidies, insurance exchanges, and even other reforms.

However, contrary to popular beliefs, ObamaCare does not substitute private health plans such as Medicaid and Medicare.

  • How is my Health Savings Account affected by ObamaCare?

There were some changes that the ObamaCare did to HSA or Health Savings Account. ObamaCare has eliminated the ability of a US citizen to use their money in their HAS to purchase over-the-counter drugs. It also made a big change in terms of penalizing the withdrawal of funds from the Health Savings Account before the age of 65 years old. The penalty increased to 20% from the previous 10%.

  • With the ObamaCare around, what will happen to my current health plan?

This will be dependent as to when your present plan took effect. This is called as the plan’s effective date. If your present independent plans or family plans took effect before the ObamaCare was signed, then it can be considered as a grandfathered health plan. You can continue using grandfathered health plans or you can opt to change it into the metallic plans.

However, if the insurance company covering your grandfathered plan makes some significant changes to the present plan you have such as increasing cost or benefits reduction, your grandfathered plan will lose its status.



On the other hand, if your present health plan took effect after the signing of the ObamaCare health plan, it is then considered as a non-grandfathered plan and you may need to convert it one of the metallic plans available.

  • Will I still be able to move on COBRA plans?

Yes, you can still move on the COBRA plans. Regulations often indicate that if a person loses his or her job, he or she will have the option to remain on the health insurance plan provided by their employers. They can do so for up to 18 months. This is how the COBRA plans work.

If you are on COBRA plans, you will have the capability to apply for an individual coverage without the fear of having this application to be declined, as ObamaCare approves of this. On the other hand, if you will opt out of your COBRA plans and you want to purchase independent plans, you will qualify for the low-income aids that will help you pay for the plan’s cost.

  • Will there be a penalty for not having insurance?

Yes, there will penalties. This penalty is the ObamaCare Tax Penalty that will take effect this year (2014). This means that if you are uninsured for about 4 months and more in 2014, you will sustain a tax penalty. This penalty will then be applied once you file for your income tax return in 2014.

If you do not qualify for the ObamaCare’s exemption obligation to buy qualifying health plan, you will also be exposed to tax penalties. Come 2016, this penalty will be annually increased along with the increase of the cost of living. You can apply for an exemption on the tax penalty under the following conditions.

  • You are having financial difficulties or hardships.
  • You have religious objections.
  • You are an American Indian.
  • You are not insured for three months and below.
  • You are an immigrant who is undocumented.
  • You are incarcerated.

In order to appreciate all the good that the ObamaCare health plan has, you need to further voice out your inquiries as well as read more about it. This act was not approved and signed out of nothing. It has been meticulously developed with the American people in mind.

See Also Universal Health Care in Different Countries:


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