Affordable Care Act’s promise is present in the name- Affordable. However, a number of anti-poverty agencies in the US fear that even after the finance assistance offered under law, the insurance is not easily affordable by Americans with low income. Moreover, going into 2017, a number of reports suggest that the insurance will cost at least 25% more.
Americans with low income who are trying to raise a family, their kids, home mortgage, food, transportation, electricity, child care, etc. are still finding it difficult to pay $50 or $100 every month from their pockets for the insurance.
What is Affordable Care Act?
The ACA (Affordable Care Act) is created to provide affordable health insurance to Americans with moderate and low income, especially as it is now compulsory for every American to have a health insurance or pay penalties. The law also expands the Medicaid eligibility to poorest Americans who make up to the 133% of poverty line. Moreover, it also offers financial assistance who make up to the 400% of poverty line to help them buy a private insurance from state health exchanges.
However, the financial assistance is not adequate for a lot of Americans. Even with subsidies, a lot of Americans still find it very difficult to pay the premium for their insurance every month, especially with all the other expenses rising.
This problem was taken into consideration when ACA was drafted and to address this, as per the law, states are allowed to create special insurance plans, known as Basic Health Program, for Americans who do not earn enough to pay the month premiums and Americans who earn a lot more for qualifying for a Medicaid. Under these plans, the government will offer subsidies to states and not to families or individuals. The states are then required to pool all of the money and then offer health insurance at affordable rates.
Currently, the Americans with low income who are not eligible for the Medicaid are required to depend on the financial aid which is offered to them from the insurance exchanges.
And determining this financial aid amount is nothing short of a dilemma. As per ACA, if there is a family with three members with an annual income which is 133% of the poverty line defined by the federal is only required to pay a maximum of 3% of the annual income for insurance premiums. It will be the government that will pay the remaining premium amount.
The premium percentage for families and individuals increases with the rise in income level, which is up to 400% of the poverty. At this income level, paying a maximum of 9.5% of the income for premiums is considered as affordable. People who earn between 250% and 133% of the poverty line can also get financial aid in the form of co-pays when they go for Silver plan. Apart from Silver, there are Bronze, Gold and Platinum plans offered by exchanges as well. Bronze insurance plans are the cheapest in terms of premium amounts but have the highest deductibles and co-payments. Platinum insurance plans have highest premiums but lowest deductibles and co-pays.
While the government offers a variety of financial assistance, a lot of Americans still find them expensive, especially when cost of living in different states of the US varies substantially. Agile Health Insurance is a well-known health insurance provider that offers highly affordable insurance plans in Indiana.
Eligible consumers can buy insurance plans that cost almost half of the plans offered by Affordable Care Act. Moreover, one is allowed to select the hospitals and doctors of their preference too. And unlike the enrollment for ACA plans, the health insurance plans offered by Agile Health Insurance can be purchased throughout the year. One should definitely visit their website to know more.
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