Health insurance has become a top issue due to rising health care costs, the Affordable Care Act (ACA) and the uncertain economy. The combination of these factors has raised many concerns, especially among people of all ages who are still not insured. Here are some of the widespread myths surrounding health insurance policies that every consumer should be aware of before joining a policy.
1. ObamaCare requires Chipping Americans
Starting with the most absurd myth about insurance, probably of all time, is the inaccurate rumor that the ACA includes a conspiracy to implant RFID chips in Americans for purposes of government control over human bodies. This ridiculous notion is completely false.
2. The ACA creates Health Insurance
While the ACA does regulate the health insurance industry, it does not create health insurance policies. The point of the law, also known as ObamaCare, is to upgrade the quality of private insurance by making it more affordable and available to Americans. It has also revised eligibility rules for Medicaid and attempt to expand health insurance through employers.
3. Avoiding Health Insurance results in a penalty
Many Americans can claim exemptions from health insurance without paying a fee. Without an exemption, however, an annual fee may be required through federal income tax. An example of an exemption is if a basic health plan is more expensive than 8 percent of an individual’s family income.
4. Everyone must purchase through the Health Insurance Marketplace
It is not necessary to purchase through the marketplace, which is for uninsured individuals or those who want to change plans. People who are satisfied with existing plans prior to the ACA can keep them.
5. Insurance Markets offer cheaper prices
Yes, it’s possible to find better deals through insurance marketplaces for certain people, but that’s not always the case. It’s possible to get government tax credits if a person’s income is 400% under the Federal Poverty Level.
6. Medicare means government Health Care
Even though the government funds Medicare, the actual program is delivered by private health care entities. In other words, doctors, nurses and pharmacists do not work for the government. Furthermore, even though the government pays for the services, the patient can choose whatever hospital they want.
7. Once a person enters an Insurance Policy, they are completely covered
Many insurance policies only partially cover individuals. Certain health conditions and medications, for example, may not be covered.
Hopefully this article has helped clear a few things up about the myths of insurance. If you still have questions or are unsure about some parts of yoru insurance, ask an insurance agent. Its a good idea to know how you are insured so you can make full use of your benefits.