What is Obamacare 2019 Cost Assistance?

Before the launching of the Affordable Care or Patient Protection law, the level or number of uninsured people in the United States of America was quite high. And at that juncture, people need to pay a relatively high level of premium charges for their health insurance coverage. As a result of which people need to pay more for medical treatments and procedures. But the Affordable Care law reshaped or restructured the medical or health scenario of the land. The law made health insurance mandatory for every citizen of the nation or else penalty to be charged to those who are not insured under the scope of the law.

While it is necessary for everyone to have a health insurance plan at the same time to make health insurance affordable the legislation offered tax credits, premium subsidies and cost-sharing to attract and to engage more people under the purview of health insurance policies. The provision of cost assistance helped more people to engage or to purchase health care insurance under the Affordable Care law.

What is Cost assistance?

The program or policy of cost assistance is to help people or individuals with payment for the reason of purchasing health or medical insurance policy. The cost assistance policy is intended or planned to provide assistance to individuals whose income level matches the Medicaid cap but who have a high liability that they are not in a capacity to afford.

Different genres or types of cost assistance under the Obama care.

Under the Affordable Care Act or law, an individual can have access to a number of cost assistance program like-

1. Cost sharing subsidy–  Cost sharing subsidy under the Obama care reforms is only applicable to the Silver Plans. Usually, people who are eligible for the cost-sharing subsidy have a household income ranging from around 100- 250% of Federal Poverty Level. This type of cost subsidy lowers the amount of your out-of-pocket payments for medical treatments. This type of cost assistance rises the actuarial value of medical policy and reduces the out-of-the-pocket costs.
2. Premium Tax Credit – The main motto of the Premium tax credit is to reduce the monthly payments of individual’s health insurance policy. Under the medical care, there is a provision where you can pay your premium tax credit in advance to your insurance service provider and can get the opportunity to reduce rates of monthly premium. Among the four metal plans of Obama Care, Bronze plan have the lowest rate or level of premium.
3. Medicaid and CHIP expansion– The program of Medicaid and CHIP or Children’s Health Insurance Program is considered to be a remarkable or striding effort in the field of Obama care health reform. Both the plans of Medicaid and CHIP provides 365 days tenure to get oneself registered or enrolled under the policy. The Medicaid policy helps to reach out or connect the middle as well as lower income group of the country.

Premium tax credits and subsidies as well as expansion of Medicaid and CHIP have helped to increase the number of people having health insurance policy under the law.