What is Obama Care

Pre Existing Conditions

I was listening to the radio the other day and the host was taking calls regarding Obamacare. There were the usual callers spouting off about liberty and socialism and the like. Entertainment radio. Then, a lady called to discuss pre existing conditions. She was obviously elderly, but declined to give her exact age. (“old enough to know a few things”). She opined that, at her age, everything is a pre existing condition. At some point that is true for everyone. But what does this mean as far as Obamacare healthcare?

Traditionally, insurance is purchased before you need it. Bought for ‘what ifs’ or ‘just in case’. Your auto insurance is hopefully never used. But if an accident happens, you are covered and repairs made with little or no out of pocket expense. If you had a ‘fender-bender’ and then called Allstate to buy a policy – guess what? – you are not covered for the accident that happened already. We all understand this. Health insurance has always been the same. It was insurance. It was ‘just in case’. Obamacare is changing this model.

When the Affordable Care Act was passed in 2010 this began changing. The new law makes it illegal to deny coverage to anyone because of these pre existing issues. Additionally, insurers can’t charge more for these policies. This will be in full force for adults by 2014. For families with coverage under the parents plan children can no longer be excluded now.

By not allowing a pre existing condition exclusion, Obamacare healthcare is changing the way all healthcare is paid for. No longer will an insurance company be able to deny payment of your expenses if they deem your treatment was for a sickness or condition that you had before purchasing insurance. (sometimes up to a year after it was purchased). It was in the insurance companies interest not to pay out claims. Ahh, the profit motive. Prove you didn’t have that cancer last year.

In the Fall of 2013, when the state insurance exchanges open, patients with pre existing conditions will be able to purchase insurance at the lower prices that are expected. All individuals will get their insurance through these or directly from insurance providers.

Under the new system insurers will be expected to pay for all expenses.(less a deductible,of course) They must pay out 80% (85% in some cases) of premiums for healthcare. The remaining 15 or 20 percent is for expenses and profit. No longer will people have to worry about not being covered for a particular illness or condition. With the advent of Obamacare healthcare – you are covered.

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