As everyone in the country knows by now, the latest phase of the Affordable Care Act kicked in on Tuesday, Oct. 1, when online marketplaces opened around the country where individuals and small businesses can shop for health care insurance.
Websites for the federal-run exchange that many states are using were so swamped the day they opened many people who wanted to couldn’t get through. Ditto for state-run exchanges in places like Oregon and Washington, some of which won’t be ready for prime time for a few more weeks.
But that’s short term. In the long run, the exchanges could make buying health care insurance more affordable than it ever has been for individuals such as freelancer writers. Exchanges and other parts of the Affordable Care Act could eventually contribute to lower costs for medical treatments, according to sources I interviewed for this MSN Money story.
How is ACA Affecting Freelancers?
I’d love to find out if you or writers you know are planning to use the exchange in your state to shop for a new health care insurance policy. Maybe you’re waiting until the dust settles and websites are running more smoothly to find out what’s available. Or maybe you’re covered under a spouse or significant other’s health care insurance (that’d be me thanks to my husband’s employer) or aren’t a fan.
Some stories on this subject are already starting to appear. On the day the health exchanges opened for business, comedian John Hodgman retweeted dozens of young adults’ horror stories about illnesses that would have cost them tens of thousands of dollars if they hadn’t had insurance. He compiled everything into a blog post, and Buzzfeed summarized here: John Hodgman retweets dozens of health nightmares.
Writer Kameron Hurley shared her own horror story in an Oct. 1 post of discovering at age 25 that she had type 1 diabetes and living in fear for the next two years of having adequate insurance coverage to pay for the medication she needed to literally stay alive. Read it here: The horror novel you’ll never have to live: surviving without health insurance.
If you aren’t sure what type of exchange your state has, here’s another MSN Money story I did that includes a list of which states are offering what: States roll out varied Obamacare plans.
Regardless of your position, I’d love to hear from you – please share your story by leaving a comment.
[Flickr photo by will1ill]
I’ve paid for individual medical coverage in California since the age of 31 (I’m 55 now), and initially had trouble getting covered due to a stint at alcohol rehab at 23 (haven’t had a drink since)-I got in by joining a group plan administered by the national Chamber of Commerce (good coverage for $100/mo), and when I moved offices across the LA county line from Ventura County noticed my coverage more than doubled, and my broker recommended that I switch into Blue Cross -and premiums went back down to previous rates.
Eventually I got married/had a child (set them up on seperate policies) and over the last 10-15 years watched our rates soar to the point that we were looking at $1200/month in premiums to continue our existing plans. Due to the state of CA suing Blue Cross we were able to significantly cut our premiums by changing coverages without medical underwriting (an issue for me with type II diabetes) and by shifting my wife/daughter into underwritten plans successfully-and were able to get our premiums down to about $700/month with a decent prescription drug benefit, yet higher deductibles.
We did receive an Obamacare cancellation notice this month (and expect to be shifted into compliant plans not sold on the exchanges)-the issue is going to be whether or not the rates are worth keeping insured or not. Our prescriptions are generic, so I don’t think we have drug cost issues-so as of now we have to wait and see how this is going to turn out.
The Silver exchange plan represents a premium increase of $370/month; the bronze plan about $100/mo (and is pretty much a catastrophic plan IMHO), and does not cover drugs. When we see what the options are, we may well decide to buy Bronze but pay cash for routine doctor visits or go uninsured altogether and pay the fine (knowing we can get covered if necessary). We are not eligible for subsidies; and I’m expecting a rough 2014 financially so paying the increased rate is out of the question.
My take-if you have preexisting conditions it’s good, but the healthy and young are going to be hurt financially (higher rates, less flexibility); at the end of the day this is not going to work without either repeal and/or major revision of the law.
Frank, thanks for sharing your story. I think a lot depends on where you live, and if it’s a state that’s running its own exchange, what types of plans that exchange will be offering. It’s my understanding that in addition to the four tiered plans (Platinum, Gold, Silver and Bronze), exchanges also have to offer a catastrophic plan – how much does it different from what’s covered under Bronze? I don’ know and would love to have someone explain it to me.
As for the young and healthy, if they haven’t had insurance, they definitely will be paying more. Then again, they’ll have insurance.
Michelle
My husband and I are currently paying for COBRA coverage from his last job; the availability of the ACA options makes it much more likely that he’s going to try to start his own business full-time rather than go back to a ‘regular’ job and do it on the side. I’ve been a freelancer for several years but have been covered under his policy – if I’d been single, I definitely wouldn’t have been able to afford individual insurance, assuming I even qualified for it.
I don’t personally know a lot of people who don’t have insurance, but I know a lot of people who feel limited in the jobs they can look at, or have really struggled after being laid-off to pay the COBRA premiums.
Thanks Laura. I too am covered under a spouse’s health insurance, unlike my single, freelance days when I went without — which makes me shudder just thinking about it. It will definitely be interesting to see whether affordable health care contributes to the already growing trend of solopreneurs and independent contractors, since the conventional wisdom is that people stay in jobs they don’t especially like in order to keep their medical coverage.
Michelle
I just don’t know. The federal government creates a health care plan that it controls. And then it sets the rules for the private plans, too?
Where will this “public option” everybody is talking about be if the competitors end up getting put out of business?
I don’t necessarily trust the private sector folks, but I sure don’t trust the government here. How should I put it? The private sector CAN mess things up and often does. The government ALWAYS messes things up eventually.