So what is a death spiral? If enough healthy, young people don’t sign up for Obamacare, then the pool of people covered under the exchanges will be less healthy and older. Premiums would have to go up to cover costs.The law would be doomed because the market will go into a “death spiral.”
Sounds scary, right? But don’t lose too much sleep over it. According to experts, the fears of an alleged death spiral are likely overblown.
The plan with the exchanges under the health law is not to provide free health care for everyone. The idea is for millions of Americans to go online, compare health plans, find out if they’re eligible for federal help with premiums and buy coverage. This nifty calculator helps you figure out how much you’re likely to pay.
The White House needs a lot of college students (or just young and healthy people) to sign up for the law to work out. Keep reading here for details.
And it covers all conditions that could preexist…No pre-existing condition could ever make you lose it
Yup. Sounds about right. Insurance companies aren’t allowed to deny you coverage any more because of a preexisting condition. It’s worth mentioning that there have been concerns about insurance companies trying to discourage people with expensive health conditions such as HIV from signing up.
Can you keep your plan? It depends. If your plan doesn’t meet the requirements of the health law, then you may have gotten a cancellation notice. In this situation, it’s up to individual states whether they will allow people to keep for another year plans that are not compliant with the new law.
President Obama infamously promised Americans that if they liked their insurance plans, they would be able to keep them. But many people got cancellation notices if their plans were not compliant with the health law.
Buying insurance on the exchanges isn’t the best idea if you’re living abroad, because this insurance mainly covers services in the United States. And lucky for you, you don’t have to! The individual mandate doesn’t apply to Americans living abroad.
How it all works in theory: You sign up, the exchange sends basic info about who you are and the plan you picked to the insurance company. Then, you get a bill from your insurance company, pay your first month’s premium, get mailed a card, and you’re good to go!
What’s actually happening: The exchanges are sending insurance companies information full of errors. So be sure to double check!