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    Posted June 23, 2014 by
    San Diego, California

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    The Importance of Obamacare (PPACA) When Planning Financial Protection

    Marc Manor San Diego Independent Healthcare Insurance Agent says “Financial protection is a different concept from financial advising or retirement planning.”

    The financial truth of retirement planning services most companies offer revolve around the concepts of paying yourself first, risk and return, compounding interest, and dollar cost averaging to name a few. All of these concepts are tried and true; but how does a family invest if they owe large medical bills and have to make difficult choices with regard to putting healthy food on the table, money for gas, day care etc.

    According to a CNBC article dated June 25, 2013, “debt as a result of medical bills is the number one cause of bankruptcy in the United States.” (Medical Bills Are the Biggest Cause of US Bankruptcies: Study – Dan Mangan - http://www.cnbc.com/id/100840148).

    The Patient Protection and Affordable Care Act (PPACA aka “Obamacare”) was aimed to help with the financial epidemic caused by high medical bills. While the PPACA makes healthcare insurance affordable to almost anyone, there are many gaps in coverage, particularly with deductibles. The PPACA is essentially broken down into five coverage categories: Platinum 90/10, Gold 80/20, Silver 70/30, Bronze 60/40, and catastrophic coverage.

    The Platinum coverage will pay 90 percent with the insured responsible for 10 percent (this is called co-insurance). The system progresses down to the Bronze at 60 percent to forty percent out of pocket. Premiums decrease incrementally as less coverage becomes the responsibility of the insurance company. Catastrophic coverage is an even lower amount of coverage that was designed to allow young healthy people to opt for high deductible plans with co-insurance in excess of 40 percent.

    A common reality is that most low income people opt for Bronze plans because when subsidized, it makes the premiums very low; down to $0 premium. Many lower income families that have opted for Silver or Bronze level plans are still exposed to high medical bills associated with co-insurance.

    It can be very affordable for almost anyone to fill in the holes with supplemental plans that can help cover medical expenses directly or pay cash to help with groceries or other necessities.

    There are a number of ways for families to fill in the gaps for their medical coverage. This type of financial protection can work with the more traditional forms of financial and retirement planning strategies. A family with good protection has the peace of mind to pay themselves for retirement, vacations, and all the other things that bring them happiness and security.
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