On Tuesday business owners got their first real look at how much health insurance would cost them through the new public exchanges created by the Affordable Care Act. The verdict so far? Some people will reap big savings, others not so much.
Rachel Mansfield, a 33-year-old self-employed esthetician in La Quinta, California, discovered using an online calculator that she and her husband would qualify together for a $400-a-month policy on the state exchange, Covered California. Previously, Mansfield was paying $530 a month to just insure herself, while her husband was denied coverage due to suffering from post-traumatic stress disorder.
Not only is the policy available through the exchange more affordable, it’s also more comprehensive and has a lower deductible. “It’s been a long time coming. I’m hoping it works out the way that it’s supposed to,” she told her local CBS affiliate.
People who qualify for tax credits have been particularly pleased with their choices on the exchange—even people who initially criticized Obamacare. Individuals and families with incomes up to 400 percent of the poverty level qualify for subsidies, while employers with fewer than 25 full-time equivalent employees may qualify for tax credits if they buy coverage through the Small Business Health Options Program (SHOP) exchanges.
Butch Matthews, a staunch Republican and 61-year-old former small-business owner was skeptical of Obamacare, he told Business Insider. But he discovered that he can trade in his $1,069-a-month Blue Cross plan with a $10,000 deductible for a $0 premium "Silver" plan (thanks to a subsidy based on his income) with a $750 deductible. “I still am a very strong Republican, but this … I’m so happy that this came along,” he said. “Our home is paid for, vehicle’s paid for, this is our expense that we have. We have more expense on medical care than everything else put together, so this is going to be a great help for us.”
Not everyone has found lower rates on the exchange, however. Young, healthy adults especially might discover their rates are higher on the exchange because insurers can no longer charge older adults astronomically more.
Chad Henderson, a 21-year-old student at Chattanooga State University in Tennessee, bought a policy on the exchange with a $175 monthly premium—even though he likely would have qualified for a $45 a month premium on eHealthInsurance.com, according to the conservative Cato Institute.
"It was a little more than I was expecting," Henderson told The Washington Post. "I like the doctor benefits, but I would have really liked a plan that includes dental and vision, since I have contacts. That kind of stuff I would have preferred."
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