By Gaetana Drake
We’ve all heard by now that the Supreme Court gave a 5-4 ruling in favor of the Affordable Health Care Act.
I’d like to point out some very positive aspects to the plan. Young adults who are over the age of 19 can stay on their parent’s insurance. This effects millions of college age people in the country, who are struggling to go to school and find jobs at the same time.
A person can’t be denied coverage because of a pre-existing condition such as diabetes or high blood pressure.
Your current insurance cannot drop you if you become ill.
There is no longer a lifetime maximum coverage amount. Most policies were limited to $1,000,000 of lifetime coverage, which could easily be wiped out by cancer treatments or care for chronic conditions.
And the best part of all….it will be illegal to charge a woman more for insurance than a man. Some states actually allowed insurances to charge a woman up to 80% more for insurance coverage. President Obama has made it illegal for insurances to consider having a uterus a “pre-existing” condition and charging more for coverage.
Several studies have suggested that passing this law will actually result in lower insurance premiums. This is what happened in Massachusetts when then-Governor Romney mandated that everyone purchase insurance. 97% of the citizens of Massachusetts have coverage and the average cost of premiums declined.
Some people are concerned about the tax penalty for not purchasing insurance. The plan calls for a $150 tax penalty in 2014, if you have not purchased insurance, with the penalty going higher each year, to a maximum of $695. However, there are no “teeth” to this penalty. The plan specifically says that if you fail to purchase insurance and do not pay the penalty, there will be no liens on your tax return, or your property. The prospect of a penalty simply encourages people to purchase insurance.
All in all, the Affordable Health Care Act will be beneficial to millions of American citizens. The Supreme Court was right on this one.