Reform by Any Other Name
Healthcare Reform Panel
Prescription for Change
Not a Bitter Pill
Cut Out the Middle Man
Premium help is also available to individuals who do not get their insurance through their employer. Those with a family income between 100 and 400 percent of the federal poverty level may qualify for a federal premium assistance subsidy. The subsidies must be used to purchase insurance through an online, federally certified public health exchange.
Plans offered in public health exchanges will be categorized by metal level: bronze, silver, gold and platinum. Subsidies are based on the premium of the second-lowest-cost silver plan in the state. The amount of the subsidy varies according to the income of the individual or family. Those who qualify will only be required to pay a certain percentage of their income for premiums.
“Let’s say there was a 31-year-old woman making just under $23,000 a year, or 200 percent of the poverty level. She won’t be required to pay more than 6.3 percent of her income toward insurance,” Reimann explains. “If the second-lowest-cost silver plan in the exchange in her area costs $3,600 a year, she’ll only have to pay about $1,500 a year for that plan.”
Reimann poses one final question: “Fact or faction,” she asks. “The insurance world is changing on January 1, 2014.”
The answer is a resounding “fact.”