Financial institutions such as commercial banks, savings and loan associations, and credit unions offer the safest alternatives for savings. Government insurance programs such as FDIC (Federal Deposit Insurance Corporation) or NCUA (National Credit Union Association) guarantee the safety of deposits up to certain amounts (currently $250,000 per depositor). Savings accounts are very liquid and require a low or no minimum balance. However, the rate of return for passbook accounts is frequently below the rate of inflation, which results in a …
Health Insurance FAQs
The Health Insurance Literacy ASK group provides answers to your questions about the Affordable Care Act to help you make smart health insurance choices and to plan your personal finances.
Here is a collection of the most common questions. If you can’t find the answer to your question among the list, you can search for additional information using the search box at the top of the page or submit your own personal question to our Ask an Expert Feature. …
What happens if even the bronze plan under the Affordable Care Act (ACA) costs too much?
The Affordable Care Act mandates that most people are insured either through their place of employment or purchasing a policy on their own. Remember, beginning in October 2013 there will be options in every state for purchasing insurance through a state-wide Marketplace.
There are exemptions from that mandate for several reasons including financial hardship, which is an official definition based on income and family size. The good news is that, depending upon your income level, you may qualify for …
Do children fall off my insurance policy on the day of their 26th birthday? How do they avoid a lapse in coverage?
Under the Affordable Care Act, children and step children can stay on their parent’s insurance policies until their 26th birthday, provided the parent’s plan allows dependent coverage. Retiree insurance plans, for example, are not required to extend coverage to dependents. Children can be covered by the parent’s insurance plans even if they are married, do not live with the parent or are not financially dependent on the parent. They can also be covered even if they are eligible to …
Are all pre-existing conditions allowed?
Yes, all pre-existing conditions are allowed and can no longer be used to bar an individual from obtaining health insurance coverage. This provision of health care reform and guarantee of coverage went into effect for children in 2010 and will apply to adults in 2014. Premiums will not be allowed to use pre-existing conditions as a factor for establishing rates.
The cost of coverage can be adjusted using only these four factors:
1) whether the policy covers an individual or …
Is a Health Savings Account (HSA) a good idea? What are the advantages and disadvantages?
SavingYour Dollars
Health Savings Accounts (HSAs) can be established if you have a high deductible policy. The policies may be offered by employers or purchased privately. Individuals open the account at a local financial institution that offers an HSA option. Funds deposited into the account may be made privately or with contributions from employers. The funds cover the out-of-pocket expenses you are expected to pay with your insurance plan and can include vision and dental expenses that are not covered …
What is the difference between bronze, silver, gold and platinum plans?
In order to be included in the Health Insurance Marketplace, each insurance company can offer four different types of “qualified” health insurance plans– Bronze, Silver, Gold, and Platinum.
A Bronze Plan will cover 60% of health care costs with the consumer responsible for paying 40%. For Silver plans insurance companies pay 70% of costs and the consumer pays 30%. For Gold Plans, the split is 80%-20% and for Platinum the split is 90%-10%. In general, the more the company …
Can grandchildren being taken care of by grandparents be on our insurance until age 26 and what if we go on Medicare?
Grandparent
If you are the legal guardian or foster parent, your grandchildren can be added to a healthcare plan you purchase on your own through your employer until they reach the age of 26. If you are not the legal guardian, they will not be covered in your individual or employer plans and you will have to look at other options.
Medicare is and will remain as individual health insurance only for those 65 and over. If you are on …
Where can I find a copy of the most updated version of the Affordable Care Act?
The Patient Protection and Affordable Care Act, signed into law on March 23, 2010, was amended on March 30, 2010 by the Health Care and Education Reconciliation Act. Affordable Care Act (ACA) refers to the final version of the law.
Click “Read the Law” and check out the information and links at http://www.healthcare.gov/law/.
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What is the difference between a premium, a co-pay and and out-of-pocket expense?
Health Insurance Plan costs can be broken into two categories: cost of having the plan and costs of using the plan. In order to purchase and continue to have health insurance coverage, you have to pay a premium. The premium is paid on a regular basis such as a certain amount monthly, quarterly or yearly. It is typical that when purchased through your employer, the plan premium is deducted from each paycheck. Basically, the premium buys you the health …