The Affordable Care Act, or Obamacare as we have all grown to call it, was signed by current President Barrack Obama, as a means to provide relief to citizens without proper insurance, either because of their inability to afford it or because insurance companies would not accept them.
The project was launched as a means to make insurances more affordable, so that everybody could be covered one way or another. Nonetheless, once the law will be enacted, it is presumed that it will not only help the individuals, but also the government.
Regardless of the particular reason or reasons why the law was enacted, it is still important to understand what changes it will impose. Following, we would like to present you with a list we have compiled of the top 5 things to expect from Obamacare in 2014. Let’s take a look at the countdown.
No.5: Both small and large employers will start cutting on health benefits
Under the Affordable Care Act, the range of requirements health policies will need to comply with expand exponentially. This has lead to an increase in the cost of premiums, as numerous Americans will have to pay for features they don’t want, or in some cases, not even need. Because of higher premiums, employers have started passing on the cost to employees, a trend which will continue in 2014. Apart from cutting back on benefits, employers have other options, equally bad: laying off workers or reducing full-time shifts to part time.
No.4: Only a few types of insurance policies will remain affordable under Obamacare
As the coverage requirements have been significantly expanded under Obamacare, many insurance plans or physician networks, especially those designed for smaller businesses, have terminated. More are expected to cease during 2014. This will translate into the fact that employers will have fewer options to choose from when signing insurance policies.
No. 3: Expansion of Medicaid
As originally intended, Obamacare should have been a means to expand insurance to citizens living under the poverty line. However, this particular point of the law remains more of an option, rather than an absolute requirement. Nonetheless, to date, the District of Columbia as well as 25 states have already approved or planning to approve the expansion of Medicaid, following the Obamacare model. But the expansion does no refer solely to an increase of the qualifying income level, but it also means that people who were previously shunned from the program will now be able to join it.
No. 2: New essential benefits
Obamacare introduces a series of essential benefits, such as surgery, hospitalization, outpatient and E.R. care, maternity and pediatric service, rehabilitation, mental health treatment, substance abuse treatment, prescription medication, laboratory work, and wellness and preventive services. What is more, insurers are no longer allowed to set annual dollar limits on any of the benefits considered essential.
No. 1: Mandatory health insurance
According to the new law, all citizens that fail to get insured by March 31, will receive a penalty against their income tax for the year 2014. Those who remain uninsured in the years to come, can expect an increasing penalty. For 2014, the penalty is expected to be around $95 per adult and $47 per child, depending on household income.
