How is the Obama health reform going to affect you?

The fact that president Obama was re-elected again means that his health care plan will progressively take effect on the coming year.

The way this new health care reform will affect each American individual will depend on what that person’s income level is and the type of insurance that person is on. The real benefit of the new health care is supposed to be felt over the long term. The health care cost is expected to go down in the long run but that won’t happen by next year. The effect of the new health care reform on each person will be in relation to the group that person fits in. Here is what to expect.

Insurance related to your job

Those who got the health insurance through their job may have to expect a rise in the cost. This is not due to the new law itself. It is due to the fact that employers are now passing on more cost onto the workers through co-insurance, co-pays and higher deductibles.

The new health care law does aim to reduce the overall cost of health expenses. There are a number of changes put in place to limit how much insurers can charge. If the laws are properly implemented one can hope to see insurance premiums cost less. That is at least what most are hoping for. It is not for sure though.

For those who have their own businesses

The idea behind the new health reform program is to standardize the way self-employed people and company workers have access to health care. It will mean that small business owners will have access to a similar health insurance compared to those working for big companies.

Self-employed people will be given the chance to buy their own health plan online. For that matter there are insurance markets currently been developed and are hoped to be operational by October 2013. To help cover the cost you will have the option to apply for tax credits.

Elderly people and those with special conditions

There is a plan to ease the cost of the health insurance for senior citizens and those with pre-existing conditions. From 2014 going, insurers will not be allowed to charge a person more than expected for reasons of pre-existing health conditions. It will also not be allowed to charge a senior citizen 3 times more than a younger person pays.

Concerning those who don’t earn that much

Not everybody can afford health insurance. That is why Medicaid has been put in place to provide insurance to low-income people. There are about 17 million people all around the country that could benefit from it. Those with an annual income of up to $15,415 can be eligible this year.

Concerning small businesses

For small businesses who have up to 100 employees, they will be allowed to purchase insurance coverage through a special program referred to as SHOP, the Small Business Health Option Program.

What about Medicare

Preventive services within the Medicare program have been made available without a deductible or co-payment. There are some cases where people having a medicare coverage have already seen the cost go down.

When it comes to taxes

By 2014 those who will not get themselves a health insurance will be fined on their income tax. It is believed that there are still people in the system that will not be able to afford the cost of the new health insurance. Those ones will be forced to pay the fine.

So you now have a picture of how it will look like after the Obama health insurance is fully effective.