Healthcare Reform School - Lesson #3
Previously we learned about the reason for the Patient Protection and Affordable Care Act a little about your educator ...Me.
The Affordable Care Act will change the way people buy
health insurance. People will go to an
on-line “exchange” to purchase insurance. There will be two types of exchanges, the public exchange or a private exchange. The exchanges will offer 4 options which
are:
- Bronze – Highest deductibles, lowest cost
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Image courtesy of voraorn/ FreeDigitalPhotos.net |
- Silver
- Gold
- Platinum – Lowest deductibles, highest cost
On the public exchanges, the application will be anywhere from 4
to 61 pages... yes 61 pages, long. It is an application to the IRS for a
tax credit/subsidy to help pay for the insurance. Not an application for insurance, since there is no underwriting, everyone is guaranteed issue.
On the private exchanges the application will be very short and streamlined, again, because there is not underwriting and in this case no IRS paper.
The insurance will be sold by private insurance companies,
not the government. Insurance companies
can decide if they will participate, and can choose based on state. Each state will be able to customize the
minimum requirements for the plans.
If an insured receives a tax credit/subsidy, that portion of the premium will be paid by the government directly to the insurance companies.
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