North Carolina ObamaCare FAQs

10 Things You Should Know About Obamacare in North Carolina

Healthcare in North Carolina is changing and now that Obamacare has been passed into law, there are a lot of changes North Carolinians should be aware of. When a new law passes, it is difficult to gauge the impact it will have within a specific state. We want those in North Carolina to be prepared so no one is surprised by a new tax, pays more than they should for health care, or misses out on subsidies they qualify for. We hope this information is helpful, but if you have more questions, need help applying for subsidies, or want expert health insurance advice, contact us, we can help. 

Obamacare Help, North Carolina

1. Will ObamaCare cause my North Carolina health insurance to increase?

The short answer, it depends on your situation and the changing Affordable Care Act rules and regulations. 

Employer Sponsored Insurance:
Do you already have health insurance from your employer? If you already receive coverage from your employer in North Carolina, you may see the cost of your plan rise. Many businesses are trying to pass along healthcare costs onto employees in the form of higher deductibles and copays. The overall goal of Obamacare is to raise healthcare costs. The healthcare reform puts some new limits on the amount insurers in North Carolina can charge as well as some other structural changes to the healthcare system and coverage requirements. Policy requirements for health insurance plans in the health insurance exchange will affect employee sponsored health insurance as well.  

For some businesses, dropping small business health insurance benefits could actually help small business owners and employees save money by opening up eligibility for subsidies and other options.  See our blog for specifics on how current NC insurance plans may be affected.

Medicaid:
Obamacare plans to expand the Medicaid program cover anyone with an annual income of up to 138% of the poverty level, which is about $15,415 a year for individuals. States can choose to opt out of the Medicaid expansion; on February 13, 2013, North Carolina voted not to expand Medicaid within the state. 

Middle Class: 
Do you think you make too much to qualify for subsidies? Many people qualify for cost saving subsidies in North Carolina, but don’t realize it. Subsidy tax credits are available to people earning up to $90,000 per year for a family of four. Cost share reduction plans are available to families making 250% of the Federal Poverty Level, or $58,875 for a family of four. To receive subsidies or enroll in cost share reduction plans, you must purchase health insurance through the online health insurance exchange. Be careful, make just one mistake on healthcare.gov, and you could miss out on subsidies that you deserve. Learn how to get help navigating healthcare.gov.  

Minimum Income Levels for North Carolina Obamacare SubsidiesObamacare subsidy income requirements in North Carolina

Annual Household Income as a percentage of the Federal Poverty Level

2. What is a health insurance exchange? How will the exchange work in North Carolina?

The health insurance exchange is an online collective where individuals, families, and small businesses in North Carolina will be able to purchase health insurance. States can choose to use the federal health insurance exchange, a state-federal partnership exchange, or a state-based exchange.   

While North Carolina originally planned to set up a state-federal partnership exchange, the legislature decided on a purely federally run exchange. Overall, the exchange will work to help lower the cost of health insurance for individuals and small businesses in North Carolina by giving them more buying power.

Health insurance plans in the exchange will be offered in four different coverage levels: bronze, silver, gold, and platinum. All of these plans are required to cover ten essential health benefits. Changes in requirements for insurance plans offered through the exchange will have a direct impact on the requirements for private health insurance purchased outside the exchange. Even if you do not buy health insurance through the health insurance exchange in North Carolina, costs and coverage of your current plan may change. Visit our blog or give us a call for more information on how your health insurance plan may be affected. 

3. What 2014 Obamacare dates should I know about in North Carolina?

The North Carolina healthcare exchange opened in 2013 and the Affordable Care Act went into effect on January 1, 2014. Below is a quick timeline so you can see an overview of the changes ahead. The laws are changing quickly, so if you ever feel unsure, give us a call and we will give you the latest.  

March 31, 2014

  • Obamacare open enrollment ends.
  • Individual mandate grace period ends.

April 1, 2014

  • After this date, most uninsured individuals will be required to pay an individual mandate tax penalty.
  • Special enrollment begins for individuals who have lost their group coverage, moved to a new state, or experienced other qualifying life events.

November 15, 2014

  • Open enrollment begins for 2015.

January 1, 2015

  • Employer mandate to provide health insurance for companies larger than 50 people takes effect.

4. Who gets penalized for not having insurance and what are the penalties?

The individual mandate in the Obamacare healthcare plan says that every American must have health insurance. A health care tax will be levied against those who fail to purchase insurance starting in 2014. This tax, which is based on household income and family size, will increase annually for the next several years. For many families who qualify for subsidies, purchasing health insurance will be cheaper than paying the tax penalty. 

However, there are some exceptions from the individual mandate tax, including:

People between jobs with no insurance for up to three months

  • Those with religious objections
  • Illegal immigrants
  • Inmates
  • Members of an Indian tribes.

Tax Penalties for People Without Health Insurance

Health Insurance Tax Penalties in North Carolina

5. How does ObamaCare affect Medicaid and Medicare?

Medicaid: Medicaid provides healthcare to low-income Americans and is being expanded on a federal level under Obamacare. Each state had the option to opt-out of the Medicaid expansion and both North and South Carolina have voted not to expand Medicaid coverage within the state. This means that Medicaid qualifications will stay the same within North Carolina, and those who currently qualify will continue to receive benefits.  

Medicare: Some cuts have been made to Medicare in North Carolina, but they are mainly aimed at eliminating Medicare fraud and reducing payments made to the Medicare Advantage programs offered by private insurance companies in NC. The overall cuts to the plan will be about $716 billion, but Obamacare aims to fill the coverage gap in the Medicare prescription drug benefit.

6. What is a grandfathered plan?

A grandfathered plan is a health insurance plan that was purchased on or before March 23, 2010. If the plan has covered at least one person continually from that day forward then it may be exempt from the Affordable Care Act changes until a new policy year begins.  

Under the Affordable Care Act, all health insurance plans are required to cover ten essential health benefits, but some of these are not included in North Carolina grandfathered insurance plans. These essential health benefits include coverage options like maternity care, ambulatory care, and prescription drugs. The essential health benefits will be determined on a state by state basis, but grandfathered plans will not have to include the essential benefits until the plan starts a new policy year. If you recieved a cancellation letter or your grandfathered individual, family, or small group insurance plan is coming to an end, contact us and we can help you take the next steps.

7. Health care reform, the Affordable Health Care Act and ObamaCare. What’s the difference? 

Many of the buzz words you read when picking up the paper in Raleigh, North Carolina or watching the news in Charlotte are all referring to the same thing. Health care reform, the Affordable Care Act and Obamacare are all names that refer to the health care changes initiated by the Obama administration. The Affordable Care Act is the official name for the Obama administration’s healthcare reform and Obamacare is an unofficial name that the public has adopted to refer to the plan. We know all of the health insurance and policy changes can be confusing, but we work hard to stay up to date and we’re always here to help.

8. What are the “essential health benefits”?

The essential health benefits are specific services or benefits that must be included in any health plan sold to individuals or businesses in North Carolina. These benefits include coverage for things like maternity, newborn care, hospitalization, ambulatory care and prescription drugs. Each state will decide which benefits will be essential for health insurance plans within that state. In North Carolina, insurance companies must include a minimum of 10 essential benefits in all health insurance plans. 

9. Can I get free health insurance?

There are many subsidies and savings available when purchasing health insurance in North Carolina. Depending on income, some North Carolina residents have qualified for fully subsidized and now have health insurance plans that cost them $0. If you do not qualify for one of those programs, you may still be eligible for partial health care subsidies or cost share reduction plans based on your income level. In 2014, Americans with an annual income ranging from 100% to 400% of the federal poverty level will be eligible for some sort of subsidy. You can see some details in this North Carolina subsidy chart, but for more information and to find out if you qualify for a subsidy, please contact us!

10. Do I need to have health insurance?

Yes, under the Affordable Care Act, nearly all Americans are required to have health insurance, starting in 2014. Some situations qualify for exceptions, such as: 

  • People between jobs with no insurance for up to three months
  • Those with religious objections
  • Illegal immigrants
  • Inmates
  • Members of an Indian tribes.  

Ready to get started? 

We have years of experience meeting the health insurance needs of individuals, families, and small business throughout North Carolina. When you work with us, you can rest assured that your will have the coverage you need, and that we will always be here to answer your questions, all year long.

Contact us here or learn more about in our North Carolina health insurance blog.

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