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ObamacareObamacare is on the horizon. To be fair, the healthcare reform act is actually known as the Patient Protection and Affordable Care Act. Many of its ”reforms” will be taking effect in 2014. Here are a few key items that may interest you.

Under the act:

  • Coverage cannot be denied for pre-existing conditions nor can you be charged higher premiums based solely on that condition.
  • Age can be considered when setting premiums.
  • Smokers can be charged a higher premium. Up to 150 percent of the premium charged a non-smoker.
  • Women and men must be charged the same premium when all other factors are equal. Believe it or not, women have been paying an average of 30 percent more for their premiums, mainly due to pregnancy related costs.
  • Eliminates nearly all yearly limits on coverage.
  • Makes health care insurance available to new employees within 90 days of hire.
  • Establishes 10 ”essential” areas that every healthcare plan must cover:
    • Maternity care.
    • Rehabilitative and habilitative services.
    • Pediatric services.
    • Mental and behavioral health treatment.
    • Preventive and wellness services (many preventive services must be provided without charging you a deductible, co-pay or coinsurance).
    • Hospitalization.
    • Laboratory services.
    • Prescription drugs.
    • Ambulatory patient services.
    • Emergency services.
  • Limits the amount of out-of-pocket money that an individual or family must pay each year.

Many of these things are good for the average person. My concern is, and always has been, how will insurance companies recoup the lost profits that will come with the Patient Protection and Affordable Care Act? Everyone knows these companies are not going to sit idly by while their profit margins dwindle.


About the author: Jerry Coffey


Jerry Coffey spent many years in a debt-riddled gray area somewhere between broke and desperately broke. His seemingly endless need for more and more cash led him to payday loans, repossessions, bankruptcy, and depression. After years of the same financial style, he heard a piece of advice that inspired him to find a way to change. The advice: ''The very definition of a fool is someone who continues to do the same things, but expects different results.'' This led him to a much more frugal lifestyle that sees all of his bills paid on time and a growing savings account. Even the seed of a retirement account has begun to sprout.


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