For millions of Americans, the Patient Protection and Affordable Care Act of 2010 has been life-changing. Call it Obamacare, the Affordable Care Act, or ACA; today, 31 million Americans have health insurance because of it.
With open enrollment running from November 1, 2022 to January 15, 2023, now is the time to consider your Obamacare options. Here’s what Obamacare is, how it works, and what you need to do.
Prior to 2010, when then-President Barack Obama signed the act into law, nearly 50 million Americans lacked health insurance. That’s roughly 1 in 6 Americans. Today, over 91% of All Americans have some form of health insurance, and the ACA is a major reason for that.
Besides making health insurance more available, the act also mandates different levels of coverage to ensure adequate coverage and help consumers compare plans.
| Level | Insurance Pays | You Pay |
| Bronze | 60% | 40% |
| Silver | 70% | 30% |
| Gold | 80% | 20% |
| Platinum | 90% | 10% |
Good choice if: You want protection from worst-case medical scenarios, such as serious accidents or illness, at the lowest possible cost. Your monthly premium will be low, but you’ll have to pay for most routine care.
Good choice if: You qualify for cost-sharing reductions, which requires a Silver plan. This can save hundreds or even thousands of dollars per year if you go to the doctor a lot. (Silver plans may also be available if you’re eligible for a premium tax credit and can enroll through a Special Enrollment Period based on estimated household income. More on that below.)
Good choice if: You’re willing to pay more each month in return for having more costs covered when you get medical treatment. If you use a lot of care, this could be a good value.
Good choice if: You use a lot of care and want to know that the majority of your costs will be covered.
Regardless of coverage level, all plans must include some coverage for:
Under the Affordable Care Act, you cannot be denied coverage or be charged extra for a pre-existing condition. A pre-existing condition is one that was diagnosed before your new insurance coverage began; you can’t just say, “Oh, I had that before.”
Not everyone in the same state with the same plan from the same provider will pay the same premium. Individuals and families with lower income may qualify for tax credits and other savings.
Generally, if your household income is 100% to 400% of the federal poverty level, you may qualify for a premium subsidy. This means a single eligible person can earn from $12,880 to $51,520 and qualify for the tax credit. A family of three would qualify with income from $21,960 to $87,840. This amount changes every year; find out more here .
Certain life events, including losing health coverage, moving, getting married, having a baby, adopting a child, or if your household income is below a certain amount, may also enable you to apply for health insurance outside the usual open enrollment period.
Depending on your Special Enrollment Period type, you may have 60 days before or 60 days following the event to enroll in a plan.
Note: some other medical insurance programs, such as Medicaid or the Children’s Health Insurance Program (CHIP), accept enrollees at any time.
There are several ways to begin the application process:
Before applying, you can check plans and prices for your state and find answers to the most common questions from the federal government .
One thing to keep in mind: some states may have slightly different requirements and a special marketplace just for state residents. Currently, 18 states manage the ACA for their own residents.
Healthcare is an important part of ongoing financial planning. Choosing healthcare coverage can be a complex process without the help of a specialist. A CFP® Professional from Facet can help you choose the right plan for your needs.
Facet Wealth, Inc. (“Facet”) is an SEC registered investment adviser headquartered in Baltimore, Maryland. This is not an offer to sell securities or the solicitation of an offer to purchase securities. This is not investment, financial, legal, or tax advice. Past performance is not a guarantee of future performance.
The Federal Reserve cut its target interest rates by 0.5% on Wednesday, and signaled that additional rate cuts are likely in the coming months. Why did they decide to cut by 0.5% vs. the more typical 0.25%? Is the Fed more worried about the economy than we realized? And what does this mean for mortgage . Read more
Sep 18th 2024
In this newsletter we’ll look back on a big up week for stocks, a major inflation report, and preview a pivotal Federal Reserve meeting. Plus we’ll dive into why doesn’t Facet doesn’t have an explicit real estate allocation.
Sep 16th 2024
Hello again and welcome to another edition of the Facet Investor Newsletter. I’m Tom Graff, your Chief Investment Officer. This week we’ll cover a tough week for stocks, highlighted by some disappointing data on the labor market. Is the market worried about an impending recession? And what does it mean for the Federal Reserve’s big . Read more
Sep 9th 2024To schedule a free consultation with a Facet expert, fill out the form below and we will contact you within 24 hours.
By submitting this form, you acknowledge that you have directly provided the email and phone number contact information listed, further acknowledge that Facet Wealth has the option to use either method to contact you, and agree to the terms set forth in our Company Privacy Notice. Message frequency varies, and message and data rates may apply. Reply STOP to opt-out of messages, and email [email protected] for help
To speak with someone now, call us atFrequently asked questions
400 East Pratt Street, 8th Floor, Baltimore, MD 21202
© Facet Wealth 2024. All rights reserved.Investment advisory services offered through Facet Wealth, Inc.(“Facet”), an investment adviser registered with the Securities and Exchange Commission (SEC). Such registration does not imply endorsement or approval. Investing involves serious risks and past performance is no guarantee of future performance or success.
The information provided herein is for illustrative and educational purposes only and should not be considered a solicitation or an offer to buy or sell securities. Nothing contained herein should be interpreted as a recommendation or research regarding any investment or investment strategy, legal or tax advice.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.
This material may contain data, links or other content from third-parties. Although Facet only provides information from sources it believes to be accurate, third party content is not guaranteed as to its accuracy or completeness. Any hyperlinks provided are intended as additional perspectives, should not be construed as an endorsement and may contain a separate privacy policy.
For additional information, please refer to our Legal Documents Page, our ADV 2A and our Customer Relationship Summary.
