Health Care Reform Facts and Myths

With the introduction of the Health Insurance Reform, known as Obamacare, a lot of untrue information as well as half-truths started to appear. See examples below.

MYTH: The government is overtaking health insurance in the United States and insurance companies cease to exist!

FACT: Insurance companies such as Blue Cross Blue Shield, Humana or Aetna as well as many others will not cease to exist and the government has not overtaken health insurance system. What Health Insurance Reform has done is that now the government will be paying part of the insurance premium of low and middle income households. Further, a requirement has been established that everyone must have health insurance with a few exceptions, and that insurance companies can’t deny coverage due to pre-existing conditions, during the enrollment period.

MYTH: It is better to keep my existing insurance plan, because the new one will be more expensive.

FAKT: Before you decide to keep your current policy, it is reasonable to check if you qualify for health insurance subsidies. If you do, you may be paying less for a new subsidized plan then for you current one. Further, in many cases, health insurance plans, specifically those purchased after March 23, 2010, will have to be changed to new plans, without even having to consider the subsidy eligibility.

MYTH: It is not possible for my new insurance plan to cost so little. Where is the catch?

FACT: The amount of the subsidy to the insurance sometimes brings about a lot of suspicion. However, the truth is that because of the new subsidized insurance, millions of people will receive billions of dollars in subsidies. Further, the cost of the insurance in different cases may decrease by several hundred percent. For example, before the reform, a family of 4 paid $800.00 per month for an average health insurance plan. Now, after applying premium subsidy, this same family may pay as low as $90.00 per month for a similar plan.

MYTH: Everyone, without exception must purchase health insurance!

FAKT: Agreed, most people will have to buy health insurance or pay the penalty. However, some groups of people, for example, individuals who are residing in the United States without legal status, or Indian tribes are exempted from this requirement of possessing health insurance. Of course, these exempted groups should also purchase health insurance, because not having the coverage can become a huge financial burden if they start having health problems or are involved in an accident.

Health Insurance

Government Health Insurance Subsidies

In order to help cover the high costs of health insurance, Obamacare introduced subsidized insurance. Read more.

New Metal
Health Plans

In order to facilitate comparison of health insurance plans, the Reform introduced new health plans: Platinum, Gold, Silver, Bronze, and Catastrophic. Read more.