Obama’s plan for healthcare reform is making waves. On both sides of the political ticket, there are many who think it is a good idea, although each side has their own reasons why and what they think would work. Still, even if those in congress think this new healthcare plan is a good thing, regardless of their reasons, maybe they government should really ask the people who live in this country what they think of the plan. Some are all for it, some do not like it a bit, some are middle of the road, some are indifferent, and there is a small group that is a little bit scared. This group does not fully understand the new bill. They have simply heard that they will have to pay for health insurance or face penalties under the law. They know that health insurance costs a fortune and for the poor, even cutting the cost of health insurance does not ease the burden of the idea of trying to afford more than one’s limited budget allows.
The Poor Can Breathe a Sigh of Relief
When you’re poor, low-income, living on a fixed income, you typically get a routine going with the bills and that is that. You know you’re going to be broke when all is said and done, but you are used to, got the hang of things every month and at least you have what you have. For the poor, we are happy with just that. However, let someone throw in an unexpected or inconvenient expense, and that’s when the stress begins. Money does not grow on trees. You can not make a turnip bleed. Whatever cliche you want to use, the bottom line is poor is poor is poor, especially in today’s economy. We live with what we have and finding more is not very easy.
When it comes to the Obama Healthcare Plan, the poor can breathe a huge sigh of relief, and they do not have to wait until 2014 to do so. They can understand right now that there are provisions within this law that will both help them and protect them.
The Details
Healthcare reform is going to bring about some big changes in medical insurance. There will be state and federal “markets,” open to all citizens for purchasing the insurance coverage they need. For those who can not possibly afford a policy, government subsidy will be available. The new plan will bring new and strict regulations with it and will make it easier and cheaper for Americans to obtain health insurance and for those with pre-existing conditions not to face denials and exclusions.
If you lose you job or your income is cut, you can apply for the subsidy and for financial hardship that will keep you from facing the tough penalties for not being insured. If your income is low enough that you can not even file an annual tax return, the government says you won’t be subject to the mandate. In that case, you will likely keep your state medical assistance or Medicare. If the cheapest plan available is still more than 8% of your income, no problem, the government is not going to hold you to it. The subsidy will be there to protect you in this case as well.
These subsidies allow you to purchase affordable insurance so you will have medical coverage without having to pay the expense out of your own limited funds. This applies even if you’re employer offers insurance, but you just can not afford it (poverty level and income guidelines apply).
Penalties
For those who could still face the mandates and associated penalties, the good news is that these penalties will be adjusted based on the cost of living. The penalties will not exceed 2.5 percent of your individual or total household income.
