Cigna Corporation (CI), UnitedHealth Group Inc. (UNH): Top Obamacare Questions Answered

4. What’s the penalty for opting out of insurance?
The controversial health mandate penalty — sometimes referred to as a tax — will be either a flat rate or percentage of household income, depending on which is larger, and will slowly build up to the full payment in 2016. At that point, the flat rate is $695 per person or 2.5% of household income.

This fine helps encourage more healthy people to join the exchanges to help offset the increased risk taken on by major insurers such as UnitedHealth.

Check here to see if your situation exempts you from the penalty and for a yearly breakdown of the costs.

5. I have a pre-existing condition. Will I go broke trying to pay my premium?
Health insurers formerly had the ability to offset risks by either denying coverage or jacking up premiums for those with pre-existing conditions. But Obamacare limits those types of behavior.

Insurers can’t deny coverage or increase premiums based on pre-existing conditions. Premium adjustments can only happen based on age, tobacco use, size of family, and where you live.

Did I miss your question?
Ask away in the comment section and I’ll do my best to provide you with an answer. Keep an eye on this space in the future as I’ll dig deeper into Medicare, Medicaid and some of the other changes.

The article Top Obamacare Questions Answered originally appeared on Fool.com.

Fool contributor Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends UnitedHealth Group.

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