The politicians and other supporters of Obamacare are quick to try to convince Americans that buying government approved health insurance will be as easy as getting airline tickets through site like www.Travelocity.com.
In my professional opinion, that is political spin at its best. Health insurance is not just any commodity. The way you establish your health insurance portfolio can mean the difference between personal financial freedom and bankruptcy.
You will need to make several decisions in the next few months. One of the decisions you will need to make has to do with where you will buy your Major Medical insurance.
There will be two marketplaces from which you may choose. Both of them will allow you to get approved Essential Benefit Plans. However, the costs to you will be different.
If you are responsible for your own health insurance, one option you will have is the government exchange. If you qualify for, and wish to claim, a government “subsidy” to help you pay your health insurance premiums, your state’s exchange will be your only option.
The politicians talk a great deal about the “free” money they are giving and the “tax-credits.” Unfortunately, they are not telling the entire story.
The same law, PPACA, that authorized the tax-credits requires that exchanges collect enough money to be self-supporting by 2015. State-run exchanges have different “usage fees” but when you use a Federally Facilitated Exchange, you will be required to pay the government 3.5% of your premium each month in the form of a usage fee.
Those Americans who do not qualify for government subsidies will have an alternative. They will be able to purchase government approved health insurance directly from the insurance companies.
The nice thing about this option is that there will be no additional “usage fees.”
MY PROFESSIONAL OPINION
It is no secret that I am not a fan of Obamacare’s Individual Mandate. I think that Americans show be free to choose if they want to pay for health insurance and what type of insurance they want.
Unfortunately, congress and the Supreme Court agreed that the Individual Mandate is constitutional as long as it is considered as being part of congress’ taxing authority.
I also am not thrilled with using tax money to pay for private health insurance premiums.
Other than that, I am fine with the new health insurance exchanges.
However, how I feel does not matter. The law is the law. By January 1, 2014, every American must have government approved health insurance unless they are specifically exempted.
The first question you must ask yourself, if you do not already have acceptable insurance, is where you will get it.
The chart above should help you decide whether you should buy your approved health insurance through your state’s exchange or directly from an insurance company.
I have already completed the necessary CMS training to offer a link to the IN and TX exchanges on this website on October 1.