The 4 Base Plans That Will Be Offered Through Health Insurance Exchanges In 2014

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Whether is it called the Patient’s Protection and Affordable Care Act, PPACA, Affordable Care Act or Obamacare, everyone knows what law is being referred to but after a year, people are still unclear of what is in it.

Last year, after the most controversial legislation of the last 50 years became law I started explaining one section a week in the newsletter for The Insurance Barn.  In March and April my intention is to share those explanations for people who were not on the mailing list.

Each day I will share the text of a different section of the new law and my conclusion as to its meaning.  As you read them, please note that I am an insurance agent and not a lawyer.  I understand that the rules made by the Secretary of Health and Human Services may make my conclusions inaccurate.  Also, note that I understand that good people can read the same thing and come to different conclusions.

The quoted legal language is taken directly from the PPACA.  The opinion statements are my conclusions.  They may or may not be consistent with what the legal minds of the U.S. Supreme Court eventually conclude.  They are for educational purposes only so that people are able to better understand the law and plan accordingly. The 4 Base Plans That Will Be Offered Through Health Insurance Exchanges In 2014   LEVELS OF COVERAGE DEFINED.—The levels of coverage described in this subsection are as follows:(A) BRONZE LEVEL.—A plan in the bronze level shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to 60 percent of the full actuarial value of the benefits provided under the plan. (B) SILVER LEVEL.—A plan in the silver level shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to 70 percent of the full actuarial value of the benefits provided under the plan. (C) GOLD LEVEL.—A plan in the gold level shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to 80 percent of the full actuarial value of the benefits provided under the plan. (D) PLATINUM LEVEL.—A plan in the platinum level shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to 90 percent of the full actuarial value of the benefits provided under the plan. What this means to you is very important.  Under the mandate in Obamacare every adult is required to purchase one of these 4 types of plans or be subject to IRS penalties.  The mandate for all Americans to purchase these plans is the basis for the several constitutional challenges that are currently in the courts working their way to a Supreme Court ruling. Right now, these are the options that all Americans will have by 2014 unless the Supreme Court rules otherwise or the law is changed by the congress and president elected in 2012.