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More details on tax credits, health insurance marketplace
On March 23, 2010, President Obama signed an important legislation popularly called the Patient Protection and Affordable Care Act (PPACA). The Affordable Care Act (ACA) of 2010 was put together to spread the coverage to most Americans, introduce new regulations in the insurance industry, manage rise in healthcare cost and make way for enhanced health outcomes. While one of the mandates was on the expansion of Medicaid to 133% of the Federal poverty level, another significant mandate was the setting up of Health Insurance Exchanges often termed as “Health Insurance Marketplaces.”
A Health Insurance Marketplaces is a federal or state-regulated marketplace that serves as a platform and gives opportunity to small businesses and individuals to choose health insurance plans. It gives them the freedom to evaluate different standardized plans and select the one that is most suitable for individual needs. Federal subsidies are offered to assist in the purchase of such plans through an exchange. These exchanges can also be accessed by the customers via phone, mail or at some locations personally. The health insurance exchange should be totally certified and functioning by January 1, 2014 according to federal law.
The Obamacare health care reform set up insurance exchanges to provide people a list of options with respect to health care plans, standardized and regulated by the states. Some of them may be eligible for federal government funds by way of subsidies. The basic premise of exchanges provided by the Obama healthcare reform comprises dispersing high costs for a group of health care users over a relatively large base of insured participants. This helps in reducing the cost for the insured that are at high risk for disease or those insured while receiving costly health treatment and care.
Private health insurance companies must agree to offer policies on the health care exchange. Private health insurance includes both health plans purchased by the individual and health insurance plans offered by employers or unions. Obamacare 2013 integrated the concept of health insurance exchanges that made it possible for workers at companies not offering health insurance to purchase plans from an open national health insurance exchange.
The Obamacare 2013 health reforms execute State specific marketplaces for health insurance. Those Americans who come under 400% of the Federal poverty level can utilize their State’s marketplace to buy federally regulated, sponsored private health insurance from contending providers. The marketplace enrollment is open to individuals, families and small businesses on October 1st, 2015 and will continue through March 31st, 2016. Anybody not able to get insurance, or an exemption, before the date of enrollment is accountable for a fee deducted from their 2016 income tax returns.