Understanding the Affordable Care Act Changes (Obamacare)

The Affordable Care Act – also known as Obamacare – brought many changes to health insurance policy. The most important changes for consumers have to do with simplifying the way health insurance policies are purchased.  The main changes are detailed below :

  • Insurance companies can no longer deny coverage for pre-existing conditions
  • All ACA-compliant plans are given a metal tier rating, from Bronze to Platinum
  • All ACA-compliant plans offer subsidy to offset cost, based upon income

Subsidies can offset the price of monthly premiums, a key point as most health insurance premiums have increased in price since the Affordable Care Act was passed into law.

Metal Tiers Explained

The other key point to Obamacare health insurance plans is the metal tier system.  All ACA-compliant plans are categorized by their quality of coverage into broad “tiers” that are each identified with a metal.  Starting with Bronze Tier through Platinum Tier, generally the higher the metal tier, the higher the monthly cost, but also the higher the quality of coverage and (generally) lower the amount of out-of-pocket expense, as seen below:

  • Bronze – least costly monthly premiums, lowest coverage (40% out of pocket)
  • Silver – often a good balance of cost and coverage (30% out of pocket)
  • Gold – higher quality and coverage, for a bit more monthly than the last two Tiers (20% out of pocket)
  • Platinum – the highest quality of coverage, at the highest monthly premium (10% out of pocket)

Some states have their own exchanges, with different coverage items being required for each tier of coverage, while others elected to have the federal marketplace operate their exchange.  The specifics will often differ from state to state, but overall, the general principle and practice will be the same as the information shown above.

All of these changes can be confusing to consumers who just want to make sure they’re covered, which is why we’re here to help!  Call us at (404) 395-0115 or contact us for more information, or get a free quote NOW!