What is the Obamacare/Affordable Care Act?
The 2010 Patient Protection and Affordable Care Act has enormous implications for how individuals and families will shop for health care insurance and the range of options that will be available in the health care marketplace.
The Patient Protection and Affordable Care Act, commonly referred to as ACA, creates Marketplaces where individuals who do not have access to affordable coverage may use premium tax credits and/or receive reductions in out-of-pocket expenses when purchasing and using a healthcare plan.
So, what is “affordable coverage?”
According to ACA, affordable coverage is a plan with a premium for the purchaser’s portion that does not exceed about 10% of a consumer’s household income. That is, if I buy a family plan and the premium for my coverage (not the portion for my dependents), does not exceed about 10% of my household income, then I have affordable coverage, according to ACA.
So, you can see that I will have to give my household income to my employer in order for my employer to determine if they are offering a plan to me with my coverage portion of the premium under about 10% of my household income.