How does obamacare affect senior citizens?
Obamacare impact on seniors should be considered in two parts, the impact on those over and under age 65. For those over 65 with access to Medicare, the impact is through the health services reforms and strengthening of Medicare. For those 64 and under, Obamacare marketplace plans offer cost effective qualified health insurance plans that provide essential health benefits. Comparison shopping for older Americans in and outside of the Obamacare marketplace is a great way to succeed. Older Americans sometimes have more complicated medical situations than younger people, and for them, particular services and benefits may matter a great deal. Comparison shopping focuses on the most important items for an individual or family subscriber. Start comparing car insurance rates now by using our FREE tool above!
Obamacare Impact on Seniors 65 or older
Obamacare does not replace Medicare, rather, it complements Medicare. The Affordable Care Act provides essential health benefits which it incorporates into Medicare A insurance coverage. Obamacare affects Medicare positively, including the below-listed ways.
- Adds life-saving essential benefits including low-cost preventive care, wellness, and screenings
- Closes the prescription loopholes in Part D
- Strengthens the Medicare Trust Fund by adding money and extending authority to 2030
- Reforms Medicare waste and overspending
- Safety measures reduce the number of patient deaths and injuries
Medicare Part D Prescriptions
The costs of medicines have been a major problem affecting older Americans for decades as pharmaceutical companies were free to charge as they wished for drugs. Some drugs were needed for patient survival nonetheless had high price tags, and many people had to strain budgets to meet the prices.
Today, many older Americans report they must often do without medications because of high out of pocket costs and deductibles.
For Seniors, who use a higher amount of medications than the population as an average, costly drugs were a significant problem. It was called the Donut Hole, the prescription coverage gap that left seniors paying far too much for medications. Part D insurance adds deep discounts to the costs of medications not covered by the original Medicare. Users get automatic discounts at the counter, and most seniors welcomed the relief from high prices. The following summarize some benefits of Part D Prescription Insurance.
• Obamacare adds a discount on selected brand name drugs at drug counters or by mail.
• Some additional coverage for brand name and generics.
• Additional savings until 2020 hen the coverage gap will be closed with full coverage.
Obamacare Impact on Seniors under Age 65
Obamacare individual mandate requires those age 64 and under to get health insurance coverage and keep it. Failure to do so can trigger shared responsibility penalties. Obamacare essential benefits help older Americans. As a group, they benefit from screenings, preventive care, and no-cost annual physical examinations. These provide relief from deductibles and out of pocket costs. The below listed items outline some important impacts of Obamacare on older Americans.
- Older Americans must find coverage under a qualified health plan during the Open Enrollment.
- Essential health benefits at no or low costs
- Remove risk of denial of coverage
- Removes high premiums based on age and prior health conditions
Costs and Obamacare for Older Americans
Older Americans may have fewer income options than younger groups, and to the extent that is true, the burdens of high deductibles and out of pocket costs can fall heavily on them. Retired persons living on pensions can feel pressures from medication prices and frequent co-pay and coinsurance payments.
The work of reducing costs and lowering deductibles is unfinished for Obamacare.
The inability to get cooperation and focus on improving rather than defunding the program in the Congress is a barrier to reforms. Low-income seniors can use Medicaid expansion to get high-quality healthcare at affordable rates. However, many states have refused to give their vulnerable citizens the benefits of Medicaid expansion; many prefer to try to stop the program than to extend valuable assistance to low-income residents.
Meeting the Mandate with Medicare
Senior Americans age 65 or older can meet the Affordable Care Act’s individual mandate through insurance coverage under Medicare as amended. Those aged 65 and older with coverage under Medicare part B- Medical Insurance do not meet the requirements of the law. Medicare part B, Part D prescriptions, and Medigap insurance do not combine to meet the requirements of the Affordable Care Act. It is the addition of Medicare Part A, the Hospital Insurance that puts these holders in alignment with the Affordable Care Act. Part A has the minimum essential benefits. Medicare Advantage meets the requirements of coverage under the ACA.
The Shared Responsibility Fee for Non-Coverage
For the taxes due in April 2016, the annual penalty for no insurance in 2015 is the greater of 2,5 percent of adjusted income or $2,085 for a family or household. This consists of and an adult fee of $695.00 and a child or dependent fee pf $347.50. Assessed at one-twelfth per month of non-coverage, the fee applies to each member of the household. The goal of the shared responsibility fee is to promote maximum coverage. The benefits of the national effort come from better health for all citizens and permanent residents. The core premises of Obamacare are promoting wellness and detecting and treating preventable diseases.
- The shared responsibility penalty cannot by law exceed the national average of a one-year premium for an Obamacare Bronze plan. Whether for months uncovered, an entire year, or income percentage, this is the statutory limit.
- The shared responsibility penalty is a tax. The computation involves modified adjusted annual household income. MAGI has exclusions including some foreign income, tax-exempt interest or income ( Roth IRA) .
- However, household income includes that from all household members required to file tax returns.
Upper-Income Americans under 65
Obamacare offers little or no financial benefits for persons with incomes over 400 percent of the poverty line. These higher income individuals can shop on the Obamacare Marketplace and find excellent coverage that meets the requirements of the Individual Mandate. They should search outside the Marketplace for private plans not sold through Obamacare. These are part of the available services and for those who will not get financial benefits, there is no reason to confine the search to the Obamacare system.
The Care Transitions Program
The Affordable Care Act has a five-year authorization for the Community-Based Care Transitions Program. This program focuses on seniors with a period of recent hospitalization who benefit from a transition period of specialized care and support with daily activities.
The goal is to reduce readmissions due to complications from initial care that reduced a person’s ability to care for themselves.
Part of the larger Partnership for Patients effort, this private sector partnership has reduced costs and improved patient outcomes.
The Impact of Obamacare on Seniors Is Positive
Whether through Medicare of the health insurance exchanges, Obamacare dramatically improves health security for seniors. Those who have Medicare insurance or Advantage meet the Individual mandate. They have better diagnostic and preventive care, and they save on prescriptions. Those who must buy insurance have the advantages of the Obamacare reforms and price assistance. Comparison shopping is a great way to find the best prescription services and lowest costs. Comparison shopping will offer the best advantages of Medicare coverage. For those over 55 and nearing Medicare enrollment, comparison shopping for health coverage should take in plans on and outside of the Obamacare marketplace. Compare health insurance rates now by entering your zip code in our FREE tool below!