If you like reading out of date information, the new book Obamacare 911 Survival Guide is the book for you! Before I became a health insurance agent, I used to work in publishing at McGraw-Hill. And long story short, anything in book form is not up-to-date information. Furthermore, Healthcare Reform is still in the process of putting down the fine print, which is hopefully do out later this summer. As a health insurance agent for nine eventful years, here is my own Obamacare Survival Guide:
Forget Everything you know about US Health Insurance.
Until December 31st 2013, much of our healthcare premium was based on an individual’s health, a family’s overall health, or a employer group overall health and claim history. Going forward much of our premium will be based on income. If you are an individual earning under $45,000 or so, you’ll get subsidy money and be able to use the health insurance exchange, essentially the health insurance exchange is just buying a plan with a combination of mostly federal money and some of your own money. If you are a couple earning under $62,000 or so, you’ll see subsidy. If you are a family of four earning under $94,000 you too will see subsidy.
If your income is over this amount…well, you’re in the cross hairs. Expect to pay around 8%-9% of your income. If you have current health concerns and medical coverage is a part of your daily life, this money may not seem like such a bad deal. However, if you are young, successful, and making a great deal on money, you may end up paying 600% – 800% higher for coverage in 2014 then you pay in 2013.
Healthcare Reform is good, it’s not all doom and gloom.
If you get subsidy health care reform is not going to be a problem. It will most likely be a good thing for your family. Essentially, you are getting to buy really expensive coverage at a huge discount. Many American’s have never received Social Security or Disability or Medicaid benefits, and now an estimated 56% of American’s will be getting government entitlements, or health insurance entitlements. These benefits will be paid for by the other 44% of Americans who do not get subsidy and have to pay much higher rates.
Also, the healthcare reform plans do solve the age old problem of pre-existing. Now everyone can easily get coverage, one’s personal health does not matter. We are all approved. This is a good thing. So many Americans have gone so long with out being eligible to buy coverage. Now these American’s do not need coverage through a spouse or job. They can buy coverage on their own. And depending on how much subsidy they qualify for, they may just get put on Medicaid or they may just pay 2% of their income. So a person earning $15,000 a year would only pay about $30 a month. The person earning $50,000 a year would pay about $400 a month.
FYI Obamacare Survival Guide is an AGENT, not a book.
Books cost money, Agent’s are Free! It is free to work with health insurance agents. Agents are licensed with the state and contracted through the insurance carriers to offer insurance. All the rates are approved by the department of insurance. Essentially, all the rates are exactly the same. A dedicated agent such as myself (I only offer health insurance products) is fully in tune with what your options are. Today, I can show you the best plan available for you to purchase before January 1, 2013. I can provide you with hints, like, Hey if you buy United Health One you can keep your coverage until December 2014!
As an agent I work for you and my goal is to guide you to the most affordable coverage, today, tomorrow, and always.
You can call me at 877-305-9083 to speak directly with me regarding your individual or family health insurance.
Obamacare Survival Guide Tip
I am only putting one tip on this article for now, because it is SUPER important. Here it is! If you currently provide yourself or your family with individual or family health insurance coverage, you must contact me before 12/31/2013. This is what we will review.
1. Will your current plan automatically end December 31, 2013.
2. How is your family’s health? How much pre-existing?
3. What is your income? – How much do we expect your premium to be in 2014?
4. What carriers in your state guarantee thier plan rate for 2014?
To give an example my current health insurance premium is only around $105 a month for an individual Health Savings Account plan. My wife had a seperate plan and pays about $220 a month for a high deductible HSA with maturnity. Next year her insurance company is forcing all members to elect new coverage. My company will let me keep my insurance. If we put her on the new Obamacare her rate will go up to $460 a month. But with my knowledge of the industry, I have moved her to a carrier that will let her keep her coverage, and now her rate is $235 a month. This simple switch will save us close to $3,000 next year!
An Example to help understand exchange subsidy.
Health insurance subsidies are only available for individuals and families buying coverage in the exchange and not through their job. For instance let’s look at a 30 year old earning $35,000 a year. Currently if this person bought health coverage in Tennessee, he or she would pay about $125 per a month for a 2500 deductible with copays. However, in 2014 income determines premium and is based on a sliding scale of percentage points above poverty level. In 2014 the 30 year old earning $35,000 would have a annual health insurance premium of $3,426. However, since the applicant is around 300% of poverty level. He or she would pay a maximum percentage of 9.5% of personal income. So a subsidy of $101 would be issued.
If you are still following me, this would reduce the annual premium to $3,325 or $277 per a month! This plan would be a silver plan and would give 70/30 coverage, meaning it would cover 70%. The plan would have a max out of pocket of $6,400 per a year. As you can see this 30 year old will have to pay more than double in 2014 then in 2013. One way the applicant could avoid such a high premium is raising the coverage to 60/40. This would raise maximum exposure to over $10,000 per a year (most likely $12.5K) and would still have an annual premium of $2,739 per year or $228 per a month. As you can see this is still a great deal more! Let’s say the 30 year old decides to work less and only earn $30,000 a year. Then the premium drops from $277 a month to $200 a month. Now let’s say the 30 year old earning $40,000 a year, then the premium only goes up to $285 a month. Let’s say he or she makes $24,000 -well at that time the 30 year old would be paying the same rate they pay today, $125 per a month.
It looks like Obamacare is going to squeeze everyone! So who benefits. Well for starters Medicaid will double in size, so in 2014 twice as many Americans will have free health coverage through the exchange and health care reform.
If you are eager to learn more about Obamacare, we strongly suggest your watch the health care reform video on our blog.