Know What’s Happening: 5 Ways Obamacare Is Effecting You
The Patient Protection and Affordable Care Act, often referred to as “Obamacare”, is one of the most significant legislative pieces of the Obama Presidency and the largest change in healthcare reform in over a decade. It effecting every U.S. citizen in some way, shape, or form, but it effects different people by varying amounts. Here are five ways Obamacare is effecting you.
1) You will be fined for not having insurance
One of the most significant pieces of this legislation is that starting in 2014, there will be fines imposed on those without health insurance. The amounts are small (up to 1% of your income if you are an individual and up to 2.5% of income for families), but this represents a significant shift in the penalties for not having health insurance.
2) Change in Medicaid Qualifications
The law stipulates that you must qualify for Medicaid if you make under 133% of the poverty threshold level. However, not all states have opted in to this part of the law. Check with your state to see if you will be eligible. However, even if you do not meet the qualifications for Medicaid, you may qualify for other subsidies. The law calls for subsidies on families making under $92,000 a year. Over 60% of Americans qualify for some sort of subsidy. The information should be easily accessible online.
3) Changes for employers
Obamacare is going to significantly change the requirements for employers. Employers of over 50 people are going to be required to provide insurance packages for their employees or face a fine. Employers of under 50 people are not impacted by this requirement. However, the largest impact of Obamacare for large and small employers is going to be a change of paperwork. This alone, if filed incorrectly, could put employers at risk for IRS fees or court battles.
4) Changes for young and old
Children up to age 26 will be able to stay on their parent’s plan, and more subsidies will be provided to mothers of young children. The elderly will see improvements to medicare, including coverage of more prescriptions.
5) Increased taxes
There will be increased taxes on high-earners (over $200,000/year), a 10% on tanning services, and increased taxes and fees for insurance providers. These small changes equate to a significant change in the tax burden towards high-earners.