The Affordable Care Act, also known as Obamacare, is one of the most polarizing political issues in American culture.
However most people, on either side, know very little about the actual details in the bill.
Because the actual law is 906 pages long and covers wide ranging issues, we're only going to touch on a few of the key points of the law.
Pre-Existing Conditions Traditionally, any pre-existing condition has not been covered in the private insurance market.
Either an application will be out right rejected, or the plan's coverage will not include the pre-existing condition.
Now, due to the Affordable Care Act, any plan issued after March 23, 2010 can no longer deny or exclude coverage to children under the age of 19 that have a pre-existing condition.
The law will be expanded in 2014 to include people of all ages.
Until 2014, those with pre-existing conditions who have gone without health insurance for at least 6 months will be eligible for a federal pre-existing condition insurance plan (PCIP).
Many states already have a high risk pool to extend coverage to this group.
The PCIP is available in those states that do not.
Expanded Coverage Previously, insurance providers could remove children from health plans at age 19, or once they were no longer full time students.
The new law now requires insurance companies to cover children until age 26.
Coverage is extended even if the child is married, not attending school and no longer a dependent.
A child can now remain on a parents plan, so long as it is not a grandfathered plan, even if they are eligible for coverage under an employer.
Preventive Care For those enrolled in employer health plans, or private health plans started after March 23, 2010, preventive health services are now free of cost, but will not count towards deductibles or coinsurance.
These preventive care benefits cover a wide range of services.
Screening and vaccines for pregnant women, as well as well-baby and well-child visits and routine vaccines are now free.
For adults, flu shots, many cancer screenings, blood pressure, cholesterol and diabetes tests are all covered free of charge.
Additionally, counseling is now available for issues such as smoking, depression, weight loss and alcohol use.
Premium Assistance Subsidies In 2014 the federal government will be offering significant subsidies towards the payment of individual and family health insurance premiums purchased in the private market.
The subsidies will be offered on a sliding scale based on income, maxing out at 400% of the poverty level, or approximately $43,000 for individuals and $88,000 for a family of 4.
These subsidies will apply only to the premium.
Consumers will still be responsible for co-pays, deductibles and coinsurance costs.
How Its Paid For The government expects new revenue from a wide variety of sources, only a few of which can be listed here.
Many large employers whose employees receive premium assistance will be required to pay a penalty.
Also, a penalty of up to 2.
5% of yearly income will be applied in 2016 to individuals who go without insurance coverage.
In 2018 a 40% excise tax will be applied to high cost or "Cadillac" insurance plans sponsored by employers.
Additionally an annual fee will be assessed to all health insurance providers.
About half the total funding is expected to come from an increase in the Medicare tax for high income tax payers.