Three years since the Affordable Care Act became a law it is finally set to take effect on Tuesday when the federally run health insurance exchanges open. In the next three months every American citizen will be expected to obtain health insurance; either through an employer, through Medicaid for those that qualify or by purchasing insurance through the exchanges, according to NBC News.
The exchanges will open on Oct. 1 even if Congress is unable to come to an agreement over a budget and the government is shutdown. The new system is also expected to get off to a shaky start; technical glitches are already causing problems for people in Oregon and Washington D.C., according to Bloomberg.
In a poll by taken in the middle of this month by the Kaiser Family Foundation and NBC over half of respondents said they were worried about the upcoming health care law, slightly less than half said that they were confused by the law, NBC News reports.
In order to try and clear some things up here are 5 things you will need to know about the Affordable Care Act, commonly referred to as Obamacare.
1. People who already have insurance don't need to do anything
The majority of Americans are already insured and will not need to pick up health insurance on the exchanges. The U.S. Census Department says only about 15 percent of people are without health insurance, these are the people who will need to purchase insurance from the exchanges by Jan. 1, 2014 or they will face a fine, according to NBC News.
2. How much will it cost?
The prices of coverage vary based on location since health care costs more in different areas of the country. There are four tiers of coverage; bronze, silver, gold and platinum. The bronze coverage is the cheapest but comes with less coverage and a higher co-pay per hospital visit. The cheapest bronze coverage can be found in Oklahoma where it will cost $105 per month; the most expensive bronze coverage is found in Wyoming where it will cost $271 per month. A chart showing what rates will be in your area is available at the Wall Street Journal.
3. What if I can't afford those rates?
Subsidies are available from the federal government that will help offset the cost. The subsidies are determined based on income but for most families making under $94,000 a year they are quite generous, according to NBC News. A calculator to figure out if you qualify for a subsidy, and how much you will receive, can be found at this link.
4. Will people with pre-existing conditions be charged more?
No. One of the main functions of the Affordable Care Act is to ensure that people with pre-existing conditions are not only able to receive health insurance but that they can do so at a reasonable price.
5. How exactly does one sign up for the exchanges?
The majority of states are choosing not to run their own exchanges so people will use the federal exchanges found at healthcare.gov to purchase health insurance. The Wall Street Journal has created a map where you can tell what sort of coverage is being offered in your state and click on a link to the appropriate exchange to purchase insurance that can be found here.
