The Affordable Care Act, also known as Obamacare, is a law that was enacted to ensure that all Americans have access to affordable health insurance. It essentially does this by offering individuals discounts to government-sponsored insurance plans. It also expands the Medicaid assistance program to offer more help to those who cannot afford health care.
The Affordable Care Act, or Obamacare, also changed the rules for preexisting conditions. In the past having a preexisting condition could result in a person not being able to get health insurance, or their health insurance costs being unaffordable.
Discounts to help offset health insurance costs come into play when your household income is between one and four times the Federal Poverty Level. These discounts are called Tax Credits. You can apply these discounts to your monthly amount owed for your health insurance, or you can declare them on your yearly tax return.
If you make too much money to get assistance through tax credits you can still purchase a plan through the federal insurance marketplace, but you will not qualify for discounts. However, you can still potentially get a good deal. It’s worth checking your options just to make sure you’re not spending too much somewhere else. If you do fall below the poverty line, it’s possible that you could qualify for Medicaid or some other type of grant assistance.
To find out more about the Affordable Care Act/Obamacare you can visit healthcare.gov.