Obamacare Facts Differ From Some Of The Misconceptions Being Promoted

Obamacare Facts Differ From Some Of The Misconceptions Being Promoted

Obamacare facts differ from some of the misconceptions being promoted. The debate over the Affordable Care Act or ACA is a contentious one. However, regardless of how one feels about the Act, it is important to understand the facts and debunk the myths about the law.

Although it is sometimes derided as a government takeover of health care, the Act does not replace private insurance with government health care. It does add new regulations to private insurance companies. However, this is a far cry from socialized medicine, as the bulk of insurance will still be provided by for profit companies.

The individual mandate portion which was upheld by the Supreme Court is misunderstood. Some people think it means a person could be sent to jail if they do not buy insurance. This is not true.

The law actually provides subsidies for families earning up to four hundred percent of poverty level, so even a family of four that makes ninety thousand dollars a year could receive a partial subsidy. Furthermore, households that are too impoverished to file federal income taxes (for example, a married couple making nineteen thousand dollar a year) would be exempt from the mandate on hardship grounds.

The penalty for not purchasing insurance is small and the enforcement mechanism weak, Initially in 2014, the penalty is only 95 dollars annually. By 2016 it increases to 2.5 percent of household income or 695 dollars, whichever is greater. But even then it is only enforced by taking money out of a tax refund. Wages will not be garnished and fines will not be assessed otherwise.

Some more Obamacare facts are that insurance providers can no longer refuse to cover somebody because of a pre-existing health condition. They also must refund you if they do not spend at least 85 percent of their proceeds on actual coverage. In addition, children can stay on their parents policies until they are 26 or older.

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