Cheap Life Insurance – Will My Policy Be Affected by ObamaCare?
Whether you currently have insurance coverage or not, everyone is talking about the changes already happening in the healthcare industry due to the new ObamaCare implementation. How, exactly, will ObamaCare impact your existing coverage? Are your premiums going to go through the roof? Here are some facts and figures that should help bring clarity to the issue.
The Goal of ObamaCare
Nearly everyone will agree that the healthcare system needs fixing. Insurance companies charge high premiums while offering minimum coverage, and hospital bills are inflated in ways that make no sense. Even if you can afford the very high premiums associated with being a high-risk policyholder, insurance companies can still refuse to cover you.
The goal of ObamaCare (formally called the Patient Protection and Affordable Care Act, or PPACA) is to streamline the healthcare process, giving more people access to medical treatment and insurance coverage and removing some of the most glaring loopholes in the system. Advocates of the Act say that it will pay for itself within the decade and become profitable shortly thereafter, while opponents feel that there are too many mandates involved where government simply shouldn’t interfere.
There are several changes already in effect due to the PPACA, with others scheduled to occur by 2014 and beyond:
- Preventive care, like prostate exams and mammograms, is now covered by insurance companies 100 percent, with no copay.
- Lifetime limits on healthcare benefits are eliminated. This means your insurance company cannot cut your benefits off at a certain dollar amount. Although annual limits remain, they have been increased.
- Insurance coverage cannot be denied for pre existing conditions in children under age 19, and children may be covered by their parents’ plans until age 26.
- Fraud protections are increased, and a new appeals process is in place to help prevent the need for litigation in case of claim denials.
Although these are all positive changes, they come at a price:
- By 2014, if you can afford health care coverage but decline it, you must pay a tax.
- Companies with over 50 employees will be required to offer benefits to their workers, or they will be taxed as well.
Your Current Policy
One thing ObamaCare has no impact on is your existing cheap life insurance policy. The PPACA is very specific about allowing individuals to retain whichever insurance company and doctor they wish. Also, the majority of changes are specifically to do with health care coverage rather than life insurance policies, so your cheap life insurance should not be impacted in any way.
Although it’s too early to tell whether ObamaCare will have the intended effect of helping to repair the most broken parts of the healthcare system, optimists hope that it’s a step in the right direction. Only time will tell whether or not the Patient Protection and Affordable Care Act will bring about the positive changes that the current administration believes are possible.