Get answers to frequently asked questions about Obamacare and the Health Insurance Marketplace.
The federal Health Insurance Marketplace, which is also called the “Marketplace” or “Exchange,” is the website where individuals can browse various health care plans available under the Affordable Care Act—commonly known as “Obamacare”—as well as compare them, and purchase health insurance. Some states, like California, offer their own Marketplace. If your state isn't offering its own Marketplace, you can use the federal Marketplace.
The health insurance plans are offered by private companies, but are all required to offer all essential health benefits, such as hospital care, outpatient services, emergency services, maternity care, mental health and substance abuse treatment, prescription drug coverage, lab services, and rehabilitative services.
Generally, you have to enroll during the Open Enrollment Period. Though, you might qualify for a Special Enrollment Period if you’ve gone through a major life event like losing other coverage, getting married, or having a baby.
A “premium tax credit” is a credit you can use to lower your monthly insurance payment when you enroll in a plan through the Marketplace. Only certain people are eligible for lower premiums and lower out-of-pocket costs for Marketplace plans. To qualify for lower premiums for a Marketplace plan, your household income must be between 100% of the federal poverty level and 400% of the federal poverty level.
If you are offered health coverage through your employer, you can purchase a policy through the Health Care Marketplace, but you are eligible for subsidies only if your employer-provided insurance isn’t affordable—that is, if you have to contribute more than 9.5% of your income toward it. If you don't qualify for your employer's insurance because you work part-time, you can get health coverage through the Marketplace.
There are four different categories of insurance plans available through the Marketplace: Platinum, Gold, Silver, and Bronze. All of the categories’ plans provide the same essential health benefits. The quality of care provided, or the access to doctors, does not vary between plan types. The various categories differ by the types and amount of costs you’ll pay.
A Platinum plan’s premium is the highest, but you’ll have lower out-of-pocket costs, like copays for visiting the doctor and for prescription drugs. A Bronze plan’s premiums are lowest, but you’ll have higher out-of-pocket costs. The Gold and Silver plans are in between.
A preexisting condition won’t keep you from getting health coverage. As of January 1, 2014, no insurance company can exclude you from coverage because you have a chronic or disabling illness or injury because you’ve received recent treatment for a medical condition. An insurance company also can’t charge you more if you have a preexisting condition.
That said, if you currently have an individual plan that excludes preexisting conditions, that plan is “grandfathered” and doesn’t have to change its rules. (A grandfathered individual health insurance policy is a policy that you purchased for yourself, or your family, on or before March 23, 2010 that hasn’t been changed in certain specific ways that reduce benefits or increase costs to consumers.)
If you can afford to buy health insurance, but decide not to, you might have to pay a fee called the individual shared responsibility payment (sometimes called the "individual mandate"). If you qualify for an exemption, you don’t have to pay the fee.
The individual mandate is still in effect for 2018, but is repealed for 2019. (To learn more, see What is the Obamacare Individual Penalty in 2018?)
Under Obamacare, preexisting conditions are covered, including pregnancy. Maternity care and childbirth are considered essential health benefits, which means all Marketplace health plans must cover them—even if you were pregnant before your coverage begins. Some grandfathered individual health plans, though, don’t have to cover pregnancy and childbirth. (An individual health plan is a plan you buy yourself, not the kind you get through your job.)
If you work part-time and can’t get coverage from your employer, you can purchase a plan through the Marketplace. Depending on your income level, you might be eligible for lower policy premium. However, if you can get health coverage from your employer, you can still buy insurance through the Marketplace but you might not qualify for a premium tax credit and other savings based on your income.
If you lose your job-based coverage, you have the option of continuing your plan through COBRA for 18 months or of purchasing an individual plan through the Marketplace. You do not need to wait until an open enrollment period to sign up for a Marketplace plan if you lost your group insurance.
If you're self-employed, meaning you run your own business or do freelance or contract work, and you don’t have employees, you can purchase an individual Marketplace plan.
If you have employees (not independent contractors), you're considered an employer and a small business. You might be able to use the SHOP Marketplace for small businesses to offer coverage to yourself and your employees.
To get more information about Obamacare, learn about available plans, and get information about how to enroll, go to www.Healthcare.gov.