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Understanding the Health Insurance Exchanges under the Affordable Care Act

Apr 24, 2023 | 0 comments

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Apr 24, 2023 | Essays | 0 comments

Even though the congressional Republicans fight to ensure the signature of president Barrack Obama to be defunded on the health care law, another of its significant features is yet to come upon October first for business.

Beginning next Tuesday, small businesses and individual Americans will be in a position to purchase private plans of health insurance from the new exchanges created by some U.S states and the federal government. The coverage through plans proposed through the set market place will commence on first January for individuals who will enroll by mid of December. Moreover, Louise (10) pointed out that the citizens who have the insurance already through the spouse or work will still retain the plan.

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According to Louise (07), the marketplace health plans are categorized into tiers, according to thehealth care cost percentage that the insurance covers. Averagely, 60% of the costs are covered with bronze, 70% is covered by the silver plans, 80% is covered by the gold plans, and finally, 90% of the costs are covered by the platinum plans.

The price of the plan that an individual will pay for their preferred plan on several factors, including the state where the citizen resides, marital status, income, and the number of dependents. According to Louise (12), the website of the federal government has tools to guide users through the available options to them, through a particular plan and information for pricing will not be availed to the public until first October.

The exchange plans premiums are becoming to be lower than expected (Louise, 12). Among the states that the federal government either partially or fully runs the marketplace, an individual will have the option of choosing the available 53 health plans averagely. Louise (08) observed that for the silver plan, which is the second cheapest, the average plan before the tax credits will be 8.this This is about 16% below the earlier estimates proposed by the HHS.

Louise (14) further pointed out the statement by Katherine Sibelius, the HHS secretary that finally the Americans are excited that the marketplace rates are lower compared to the initial projections. Consumers, in the past, used to be priced out or denied the health insurance options of quality. However, this is no more, because of the affordable care act. This plan will enable American consumers to choose from a variety of new options for coverage at an affordable price.

Louise (15) observed that, despite the affordable plans in the market, the report does not provide more details on the plans that are more expensive, or even the insurance company’s names that offer the plans through the exchanges. Furthermore, the premiums of the insurance very much often between or within states. For instance, the New York Times elaborates that a Rochester resident may pay $337 monthly while a resident of New York may part with $611 monthly for the same coverage. It is important to note that when president Barrack Obama alongside former president Bill Clinton touted the savings of the exchanges while speaking at a forum for healthcare on Tuesday in New York (Louise, 06).

President Obama explained that within most of the states in the country if you are a woman aged 27 years and does not possess health insurance and get on to the exchange, she will be in a position to buy health insurance of high quality for a lesser cost compared to the bill of a cell phone.

The negative side of the new health care exchanges that will be run by the federal government is that the young, healthy buyers will be likely to pay more compared to what they currently do when older. Therefore, the consumers who are sick should be given some break (Louise, 09).

The plans that are offered under the overhaul of health care to the individuals who do not get insurance through the government program or employer will further provide a wider coverage compared to the current policies. Moreover, the costs of the plans will not be fixed but vary from one state to the other. The subsidies provided by the government will lessen the costs to the consumers who earn a low income.

Work Cited

Louise R. “Prices set for new U.S. health care exchanges.” The Wall Street Journal. 57.1 (2013): 3-16. Print.

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