Information About ACA

Information About ACA

The Affordable Care Act – also known as Obamacare – brought numerous changes to health insurance. The most important changes for consumers have to do with simplifying the way a health insurance policy is purchased. The main changes are detailed below :

  • Insurance companies can no longer deny coverage for preexisting conditions
  • All ACA-compliant plans are given a metal tier rating, from Bronze to Platinum
  • All ACA-compliant plans offer subsidy to offset cost, based upon income

The subsidy can offset the price of monthly premiums, as most health insurance premiums have increased in price since the reform law was passed.

Metal Tiers Explained

The other key point to Obamacare is the metal tier system.  All ACA-compliant plans are categorized by their coverage and premium amounts into broad “tiers” that are each identified with a precious metal.  Starting with Bronze Tier through Platinum Tier, the higher the tier, the higher the monthly cost, but also the higher the amount and quality of coverage, as seen below:

  • Bronze – least costly monthly premiums, lowest coverage (40% out of pocket)
  • Silver – often a good balance of cost and coverage (30% out of pocket)
  • Gold – higher quality and coverage, for a bit more monthly than the last two Tiers (20% out of pocket)
  • Platinum – the highest quality of coverage, at the highest monthly premium (10% out of pocket)

Some states have their own exchanges, with different coverage items being required for each tier of coverage, while others use the federal marketplace for their exchange.  The specifics will often differ from state to state, but the general principle will be the same as the information shown above.

All of these changes can be confusing to consumers who just want to make sure they’re covered, which is why we’re here to help!  Contact us today for more information, or call at (972) 733-0870.  To see the plans available to you, get a free quote now!