New Health Care Law – Affordable Care Act

The new health care law, the Affordable Care Act (ACA) and Health Care Reform are three different names for the same federal law that changes how Americans get health care and how health insurance companies deliver.

The Affordable Care Act expands health insurance to include more health insurance benefits for more people.  Since most people will be required to have insurance,  subsidies from the U.S. government will create tax credits for the Affordable Care Act to help cover the cost.  Those who choose not to get coverage are subject to fines.

The Affordable Care Act also comes with changes and responsibilities for companies offering health insurance to their workers.

In the long run, Affordable Care Act is meant to help cut the high cost of health care although individual costs may be higher.  Measures will be taken to help lower the overall cost range from incentives for people to take good care of their health to making it easier and cheaper for health care services to be offered.

Read more from Healthcare.gov .

Some other major changes of the Affordable Care Act that you should know about.

• Young adult coverage – Children up to 26 are allowed to be on the parent’s plan.
• Children’s pre-existing conditions – No one under the age of 19 can be denied coverage due to a medical condition that already exists.  In 2014, “pre-existing condition” goes away for everyone.
• Preventive care services – Most individual policies and group benefit plans include Essential Health benefits.  This includes preventive and wellness services as well as prescription drugs that help keep you healthy.  This coverage won’t end when you reach yearly dollar limits or over a policy’s lifetime.
• Guaranteed coverage – Beginning in 2014, you will be able to get insurance coverage without being turned down due to age, gender, health history, or where you live.

Read more: New Health Insurance for low-wage workers.