Ever since the implementation of the Affordable Care Act, you have likely been hearing about nothing but health insurance. Some people are ecstatic with their new coverage, while many more are disgusted with their increased premiums and deductibles. Insurance is a wily beast to understand and to fully grasp healthcare laws you must know with what you are dealing. Included here are a few things you need to know about health insurance in the United States.
You Have to Have It
Signing up for health insurance is no longer something you optionally do if you suffer from a chronic illness or excessive money. Health insurance is now required under Obamacare and you will be fined for each month you go without coverage. The fine will come out of your taxes in the following year and you could find yourself owing amounts as much as 2.5% of your yearly income per person in your household.
The good news is that with the changes in healthcare, there are more options for low income and chronically ill individuals. Insurance companies are no longer allowed to withhold coverage from people with pre-existing conditions or those with poor health. You also may be eligible for certain tax breaks on monthly premiums through Obamacare if your income is low enough to qualify.
Deductibles Can Change
Regardless of what you may view online, most insurance companies have flexible options regarding your deductibles and premium. Your deductible is the amount of money you have to pay out of pocket before insurance will begin picking up healthcare costs. The more you pay each month on your premium, the lower your deductible will be and vice versa. People with chronic diseases or illnesses may wish to pay more each month in exchange for a lower deductible.
Premiums Are Monthly
Your premium is basically the cost of having health insurance. Each month you will have a premium due, but the amount will be up to you. You can find a variety of coverages with different premiums depending on your healthcare needs and financial ability. Choosing higher deductibles can result in a lower monthly cost, which can be a better option for people who are young and healthy.
You Affect The Cost
While you may believe the insurance companies are calling all of the shots, there are a few things you can do to help lower your monthly expense. Being a healthy individual is one step towards decreased health insurance. Quitting smoking and losing weight can help you qualify for better insurance at a lower cost. Insurance companies are more likely to want customers who do not pose a big financial risk to them.