This content was written by LessAccounting.com for small businesses and individuals in the hope of sharing information to help others make informed decisions about health insurance.

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Misunderstandings & Myths

There's a lot of misinformation out there. Here are some truths:

  • "Obamacare" is not an official name. It's just a nickname for the Affordable Healthcare Act or "ACA."
  • Obamacare is not "buying insurance from the government." Obamacare is new rules for insurance companies and requirements for everyone to have insurance.
  • You can only buy insurance during open enrollment times unless you have a qualifying life event. So, no, you cannot get insurance on the way to the hospital.
  • Obamacare is not free insurance (unless you're on Medicaid, Medicare or some other government subsidy).
  • Anyone making up to 400% of the federal poverty level will be eligible for a subsidy to offset the cost of health insurance. The subsidy phases out as your income approaches the limit. According to Kaiser Family Foundation, an individual tops out around $45,000 per year. For a family of four, the cut-off is around $94,000 per year.
  • You do not have to purchase insurance through a government website. Healthcare.gov is just a resource that the government provides, but you still have to purchase plans directly from insurance companies. We recommend consulting an insurance agent to help you choose and purchase the right plan for you.
  • Many non-ACA health plans have been grandfathered in through Dec 2014. Personally, while our small-business group plan was grandfathered in, we still might change to an ACA-approved plan.
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