Five Things You Should Know About the Affordable Care Act

Written by Dawn Aulet
On Oct. 1, unless something changes, Americans will have the first opportunity to sign up for the Affordable Care Act.

The Kaiser Family Foundation says there are about four main ways we will experience healthcare once the law is in effect. Half of all Americans will still have insurance coverage through their jobs. One third will be on Medicare or Medicaid, one in 10 will purchase private insurance through a healthcare exchange, and one in 10 will still not be able to get coverage.

Here are five things we think you need to know before Tuesday:

1. Don't panic, plan. While nearly everyone will be effected by the act—if you have insurance it will likely change, and if you have been uninsured, you will need to sign up—panic is not the answer. Instead, do some research. Starting at the Kaiser Family Foundation website is a great idea.
2. Find someone local to help: DuPage County Health Department's website provides links and information to help people find out how to get the coverage they need. For an explanation of the online marketplace, visit the federal government's healthcare website, and check out the Kaiser Family Foundation video accompanying this article.
3. Act earlier rather than later. After the law is in effect, you will only be able to sign up for insurance coverage during specified open-enrollment periods. This year, a special six-month period lasts from Oct. 1 to the end of March 2014. Later enrollment periods will be shorter. Earlier purchasing for private insurance might also turn out to be less expensive.
   
4. Here is a simple way to look at the changes, thanks to the Seattle Times: 
   
   • If you make less than $15,856 ($32,499 for a family of four) you likely will qualify for Medicaid, the federal-state plan that has been greatly expanded. 
     
   • If you make up to $45,950 ($94,200 for a family of four) you may get a subsidy that will reduce your premiums. 
     
   • If your income is low enough, you can qualify for a second type of subsidy to help with cost sharing (out-of-pocket costs). It also will link you with various other services, if you qualify.
   • If you are older, prices will come down; young people will pay more. However, young people can stay on their parent's plan until age 26 and can buy catastrophic plans until 30.
5. Although part of the law originally included a requirement that businesses with more than 50 employees had to insure or pay a penalty, the federal government delayed that requirement to 2015. So if you work for a small business, you might have to insure yourself for 2014. For more information about the impact on businesses, click here for an article written by the Illinois Chamber of Commerce.

It can be confusing, so its best to seek out local professionals who can walk you through the steps of the act and help you pick the plan that is right for you.