3. Can You Keep Your Old Insurance? Maybe Not
After an outcry from people who feared cancellation of their insurance would force them to lose their doctors or pay higher rates for a health plan, the Obama administration said it would allow people to keep the policies for 1 year -- even though they might not meet the law’s minimum coverage standards. Earlier this month, officials extended that another 2 years for a total of 3.
But there's still one catch: States don't have to allow those extensions, and insurance companies don’t have to offer them. Washington state, for example won't allow those policies that don't meet "Obamacare" standards to be offered.
4. Those Penalties Can Add Up
The tax penalties won't kick in until you file your 2014 taxes in 2015, but they can add up, and they'll grow over time.
The penalty for not having health insurance in 2014 will be 1% of your annual income or $95 per adult, whichever is higher. If you pay $95 per person, you'll also have to pay a penalty of $47.50 for each uninsured child under 18 in 2014, up to a maximum amount per family of $285. In practical terms, though, most people who have to pay a penalty will fall into the 1% category. That’s 1% of your household income above the tax filing threshold of $10,150 for an individual.
In the next 2 years, that penalty gets stiffer: In 2015 it will be 2% of income or $325 per person. In 2016 it will be 2.5% of income or $695 per person, whichever is higher.
5. Premiums May Not Tell the Whole Story
Are those Marketplace policies a good deal? It's hard to say. A January report from PriceWaterhouseCoopers found that premiums for Marketplace policies are cheaper, on average, than those offered through employers. PriceWaterhouseCoopers's Ceci Connolly told Marketplace.org that even when you factor in all the out-of-pocket costs, the average top-tier gold and platinum plans are similar to employer plans.
But why are deductibles so high, rising into thousands of dollars a year in some cases?
"An insurance company needs to collect more money in terms of premiums than it expects to pay out," Bowblis says. "One way to make sure this happens is to either have low premiums and high cost sharing, or high premiums and low cost sharing." The Obama administration pushed for lower premiums, he says. "But low premiums equal high deductibles."