Americans obtain health coverage in different ways depending on whether they meet certain qualifications. Americans under the age of sixty-five have a few different options of obtaining health coverage. One of the most common methods of obtaining health coverage nowadays is through the Affordable Care Act, also known as Obamacare. For those over the age of sixty-five, Medicare coverage is what will take over.
Medicare is a federal health insurance program that was created in 1965 and consists of two main parts: Part A and Part B. Theses are meant to insure beneficiaries over sixty-five for costs associated with hospital and physician services. Part A is what covers hospital stays, skilled nursing and home health. Part B covers the beneficiary’s doctor visits, lab tests and medical supplies. Theses are the standard basic benefits the federal government requires to be covered.
The intention of the ACA (Obamacare) was to give all Americans access to affordable health insurance. The ACA prohibited private insurance companies from denying someone coverage, or charging them more, due to a pre-existing condition. And under the ACA, people who meet certain income qualifications are able to obtain financial assistance with the monthly premiums. By going through one of our brokers and purchasing a plan on exchange, those who qualify will be able to apply a tax credit amount based off their income to offset the cost of their insurance.
There is no one type of policy actually named “Obamacare”. It is simply a nickname for the Affordable Care Act which is a legislation that governs people’s access to health insurance and how much they pay for it. Anyone who is a US citizen between the ages of zero and sixty-four can purchase a private health plan from any company they choose, and the ACA assists with the financial side of it. Medicare is insurance provided by the federal government and is only reserved for those older than sixty-five or are disabled.
There are some who pay a very low premium for their health insurance if they are covered under an ACA plan (some as low as $0 depending on the tax credit they receive).Once you reach the age of sixy-five, that kind of plan will drop since you qualify for Medicare coverage. Since Medicare is a federally obtained health insurance, everyone covered under it must pay the $148.50 premium. For financial assistance with Medicare coverage, subsidies are based off the beneficiary’s income and assets. This is why it is important to start looking at Medicare coverage options at the age of sixty-four. The enrollment period for sixty-four year olds is seven months long-three months before their birth month, the month they turn sixty five, and three months after the birth month. It is crucial to start preparing before to avoid a gap in coverage when the ACA plan drops.
If you have questions or are confused if you are liable for any of these costs, then book a meeting with an agent. The goal is to lower your potential cost as low as possible while still receiving great medical care when you need it.
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