How will the health insurance reform help reduce the cost of insurance?

Many Americans find it difficult to locate and maintain affordable health coverage today. In fact, even employer-sponsored medical insurance premiums and out-of-pocket costs are increasing. More and more people are opting to live without health insurance, which can be a financially risky choice. Without insurance, a single illness or injury can lead to thousands in medical debt. The Affordable Care Act was passed in order to make medical coverage more accessible and affordable for all Americans.

Health care reform will reduce costs for individuals and families in several ways. First, it creates insurance exchanges, a marketplace through which qualified insurance plans will be able to compete. Americans will be able to compare plans quickly and easily and determine which ones fit their needs best in terms of benefits and price.

Another way it will reduce costs is through tax credits. Those who qualify will receive premium assistance and tax credits in order to afford high quality coverage. Small business will also receive tax credits as an incentive to sponsor their employees’ group health insurance coverage. Employers who fail to offer coverage may be subject to a tax penalty in some situations.

The Affordable Care Act has also placed a cap on how much families will be required to pay for certain medical expenses. Insurance policies will no longer have lifetime caps, and they will no longer have limits based on pre-existing conditions. Deductibles and out-of-pocket expenses will also be capped. The average consumer will realize dramatic protections from exorbitant medical costs.

Health care reform was intended to provide more protections for the consumer while creating a more uniform insurance system for consumers and employers both. If you are searching for affordable insurance, one of our insurance agents can help you locate the plan that is right for you. Contact us today to schedule your appointment or to learn more.

Visit HealthReform.gov to learn more about the health insurance reform.

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