How Does ObamaCare Influence Your Health Insurance?

Although the Affordable Care Act was signed into law in 2010, the full effects of the legislation have yet to trickle down to ordinary health insurance policies. The main principles behind so-called 'Obama Care' are the reduction of healthcare costs and the efforts to ensure that all Americans have access to affordable health insurance. The act has also been designed to widen the scope of Medicaid and ensure that the estimated 33 million Americans without insurance can purchase affordable policies. However, this legislation is complicated, so breaking it down into its main points is the best way to fully understand it.

What Are the Main Points Of 'ObamaCare'?

1. A Sliding Scale of Maximum Premiums - A family of four earning a combined annual income of $29,000 or less will be eligible for Medicaid. Families earning between 133% and 400% of the national poverty line will receive tax credits to assist in the purchase of private insurance. Insurance premiums will be subject to a cap of 6.3% for a household that has a combined income that falls between 150% and 200% of the official poverty line. Premiums will be capped at 9.5% of household incomes when those incomes are between 200% and 400% of the poverty line.
2. Financial Penalties for Those Who Don't Purchase Insurance - The act defines the affordability of insurance as a policy that does not exceed 8% of a person's income. Those who can afford to buy health insurance but refuse to do so will be ordered to pay a 'fine' of $695 or 2.5% - whichever is greater.
3. Discriminatory Practices Will Be Banned - Insurance companies will not be allowed to increase premiums or refuse coverage on the basis of pre-existing conditions except in a few circumstances, such as coverage for the elderly or for smokers. However, restrictions are in place to limit discriminatory premium increases to a ratio of 3 to 1.
4. Creation of a More Competitive Market - From 2018, a 35% tax will be imposed on employee health insurance plans in excess of $10,200 for one year of individual coverage. It is hoped that this will force employees to shop around for the cheapest policies possible, thus forcing insurance companies to keep their prices low. Online healthcare exchanges will be state or federally-operated marketplaces for the purchase of health insurance policies. It is hoped that, over time, giving people the chance to compare policies on an equal basis will drive prices down.
5. Tighter Regulation for Insurance Companies - Insurance companies now have to spend between 80% and 85% of the income they receive from premium payments on medical care. This legislation is designed to limit spending on executive bonuses, administration and marketing. Companies that underspend on healthcare expenses will be forced to give their customers rebates. Both drug manufacturers and insurance companies will be faced with a substantial annual bill in order to finance this overhaul in America's healthcare system.

It is too early to tell whether or not these changes will result in lower premiums for the American people. 'Obama Care' will provide the insurance industry with 32 million new paying customers, but insurers will be forced to spend more money on care, provide cover for anyone who wants it and provide coverage without discrimination. Insurers may also be forced to provide preventive care in many situations. Increased and more transparent competition could drive prices downwards over time. However, experts and analysts currently have very different views on whether 'Obama Care' will lead to price reductions in the long-term.
This is a complicated issue, but if you feel you need to seek advice from a market expert, give us a call at 866-933-6691. We are here to explain your options and guide you through the relevant changes in the law. You can also get an online Tampa health insurance quote.

Does Home Insurance Cover Wind Damage?

It doesn't take a catastrophic event to cause serious damage to your property. High winds, even in the absence of a named storm, can cause damage to your home. The time to make sure you are covered in the event of wind damage is now, before it occurs. Here's what you need to know about this type of insurance.

What Is Wind Damage Insurance?

Wind damage insurance, also called windstorm coverage, provides protection in the event that your property is damaged by high winds. Such winds may develop in relation to a thunderstorm, hurricane or tornado. Sometimes, even a blizzard or hail can result in damage to your home. For example, if high winds knock a tree into your home or hail breaks your windows, wind damage insurance typically covers that. It usually won't, however, cover the removal of trees that fall in your yard without damaging your home or hail that damages your car.

Standard Home Insurance Policies

Whether or not you are covered for wind damage depends on the terms of your policy. In some states, standard policies do include wind damage coverage. Check your policy to determine whether yours does, or contact an insurance professional to discuss your needs and coverage. This review and discussion is important for the following reasons:

• Coverage can differ depending on the insurance company you choose.
• Your policy may include coverage exceptions that affect your protection in the event of wind damage.
• Deductibles on Tampa home insurance policies vary. A higher deductible means more out-of-pocket expenses for repairs.
• Wind damage coverage is often excluded from policies in areas that are the most vulnerable to hurricanes.
• You may need to purchase separate wind damage coverage if it is excluded from your policy.
• There are limits to coverage. 

Prevention of Wind Damage

While wind damage insurance is important in the event that the worst happens, prevention is just as critical. If you take steps to prevent wind damage, you may not have to pay anything out of pocket. On the other hand, if damage does occur, you may have to meet a deductible and possibly pay for the removal of debris that falls outside your home.
Here are some ways to prevent damage from destructive winds:

• Keep your roof and shingles in good repair.
• Ensure that outer buildings, lights and fences are well anchored.
• Keep your trees and shrubs healthy and appropriately trimmed. Remove deceased trees.
• Before a storm, park your car in a garage or shed or at least away from trees.
• Make sure your windows and siding are in good shape.
• Ensure that your outer doors are sturdy, have triple hinges and posses deadbolt locks.

Speak to an insurance professional to get more information about wind damage insurance. Call Adcock-Adcock Insurance Agency at 813-933-6691 for a free quote.