Lately,
President Obama has spent a lot of time touring the country to discuss the
economy and the middle class as well as touting the benefits of his landmark
legislation, the Affordable Care Act (ACA).
Poor
and middle class Americans will likely benefit the most from the ACA with its
system of subsidies and tax credits for purchasing health insurance, which is
something that the president is keen to highlight.
Less
positive attention however, is paid to those individuals who are in the process
of gaining the skills necessary to enter the work force and embark on a career,
namely college students.
With
all the stories in the news about sticker shock for young people buying health
insurance, many college students are skeptical, wondering how the ACA will help
them, if at all.
The
good news is that there are many provisions in the ACA that are aimed at
helping young people, so that they too can transition into the lives they hope
to lead, without worrying about healthcare.
Admittedly
this is a tall order, and though it is still unclear as to how exactly the
implementation of the ACA will play over the next few months, let’s looks at
some of the ways so far that college students can benefit.
Medicaid:
Big Changes, For The States That Want It
One
of the ACA’s more controversial and celebrated provisions is one that calls for
the voluntary expansion of Medicaid on a state-by-state basis.
The
expansion would allow adults who do not have children to apply for and be
covered by Medicaid, a first in the history of the service.
Medicaid,
for those of you who don’t know, is a taxpayer and government funded healthcare
plan for people whose income is too low to be able to afford private health
insurance.
Currently,
the annual income requirement in most states is 100% above the federal poverty
line, per family. The expansion will raise that requirement to a considerably
higher 138% above FPL, which would mean that more people stand to benefit from
Medicaid.
Although
the expansion is not mandatory, New York and New Jersey are among the states
that have already begun expanding their policies, and 26 states in all are
either on board with the changes or leaning toward expansion.
You
may be able to receive benefits under Medicaid, once the ACA comes into full
effect in January 2014.
 |
| Photo: Stockvault |
Student Health Plans
Most
accredited four year colleges and universities in the U.S. offer health
insurance to their students at a reduced rate, during a given period of
enrollment. You may be familiar with these plans, or you may already be enrolled
in such a plan.
The
ACA requires that all healthcare plans provide coverage regardless of
pre-existing conditions, and a list of health services are to be covered as
well. These services, which include prescriptions, emergency medical, and
mental health services, are currently not covered by most student health plans.
The
end result: SHP’s aren’t going anywhere. And it looks like they will be better
under the ACA.
Catastrophic Insurance:
The Risky Choice
Many
students don’t benefit from student health plans, and may be wondering how they
can find healthcare that protects them from a big medical expenses at a low
cost. Catastrophic insurance does just that.
Catastrophic
Insurance Plans are cheap, and they are set up to shield you from paying
thousands due to major unforeseen medical emergencies.
The
problem with these plans is that it’s a one-way street: you pay less to prevent
a disaster, but common health services like regular checkups are not often
covered. For this reason, this option is not recommended unless you know what
you’re getting into, and you’re sure it’s the best choice.
Mom and Dad May Be Able To
Help
If
you’re a working student trying to make it on your own, you may be too prideful
to ask your parents to help with your insurance. But in actuality, it might be
your best option.
In
2010, the ACA implemented a provision that allows adults to remain insured through
their parents’ insurance policy until age 26. This was of course great news for
millions of Americans. If your parents are working and have insurance, and
you’re not yet 26, it’s worth exploring this route to healthcare.
If All Else Fails:
Subsidies
The
Affordable Care Act requires states to have an online marketplace in operation
by October of this year that will allow individuals without insurance to
purchase it so as to comply with the individual mandate.
Aside
from not having to pay a fee, the bright side of the mandate is that tax
subsidies are available for people under the age of 65. The government
calculates how much you can save based on your annual income, number of
dependents, and marital status.
The
Henry J. Kaiser foundation has set up a subsidy calculator that will give you a
quick estimate of how much you can save, so you can know going in, what breaks
you’re entitled to.
Conclusion: It’s Not So
Bad After All
Despite
the warranted concern of many young Americans, it appears that healthcare
reform is indeed on their side.
This
knowledge is not yet enough to lessen concerns about the future that many
Americans have, but it is enough to help them move forward without hesitation,
into an option that will give them some security, in a time of extreme and
relentless uncertainty.
Michael Cahill is the Editor of the Vista Health
Solutions Blog. He writes about the health care
system, health insurance industry and the Affordable Care Act. Follow him on
Twitter at @VistaHealth
0 comments:
Post a Comment