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Will Obamacare Help or Simply Create More Medical Debt?

December 22, 2013 | Financial Tips | No Comments

obamacareWhile Obama has passed the Patient Protection and Affordable Care Act (PPACA) or simply Obama care, it will only benefit a certain population while the rest of the country shoulders the burden.

First of all, everyone in America is going to have to buy some form of health insurance. This could be a difficult task for some people who are already struggle with their own debt, living from paycheck to paycheck. This will only add another fee in their very tight budget. With rent, food, and transportation costs rising, health insurance may be the last thing on their mind There may be ways to subsidize the cost, but middle-class earners who earn just above the threshold may be left behind and forced to pay extra.

Your children could be insured to till the age of 26 which is sounds fantastic, but it may not necessarily be enough. New graduates are already faced with a great challenge of finding work and many of them are underemployed, earning less than their education. According to CNN Money, the class of 2013 college graduates average about $35,200 in college debt. It may take them several months, or several years to find a steady paying job. Supporting themselves is already difficult enough and adding healthcare in their budget could take away money that would be used to pay off their college debt. Learn your options to lift the burden of medical debt.

Although it may be a monetary burden for some, it may create medical debt relief for others that have been barred and discriminated in the past. Under Obamacare, an insurer cannot drop you based on a previous year’s medical records. This will also open doors for people that could not qualify for health insurance in the past. It can also benefit people that have a lifetime maximum limit. With that removed, medical insurance could cover much more than before. Also, free preventative health care could cover hundreds of dollars’ worth of expenses that people normally pay out of pocket every year. Flu shots, preventive screenings, checkups, and others could be covered under this new Act.

But to pay for Obamacare, higher premiums, higher Medicare taxes, and smaller tax breaks could be foreseen in the near future. In order to have the Patient Protection and Affordable Care Act actually be “affordable”, the cost of it would be paid out of normal hardworking Americans. This solves the problem some for people with mounting medical debt, but others with little to no health problems will see this as a burden, leaving them a smaller paycheck every month. This is going to be a costly bill from a federal government already in financial trouble.

 

 

 

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