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The Coverage Gap Under Obamacare, aka Affordable Care Act
Friday, 22 November 2013 14:21

Regardless of which side of the political fence you sit, or what your opinion is of the Affordable Care Act, commonly called "Obamacare," there is a gigantic gap in coverage that all working Americans must deal with.

If you don't handle this one gap in coverage, then you may still end up in bankruptcy, even with "affordable" health insurance, even if you receive a subsidy from the government.

What is the "Obamacare" coverage gap?

The gap is protecing your paycheck. If you have an individual medical insurance policy, and you fail to pay the premium, then that coverage will lapse. When the coverage has lapsed, any medical expenses that you incur during that period will not be covered, and you will be personally responsible for all of those medical bills, plus any collection fees, lawyer fees, and other penalties under the Affordable Care Act.

The number one cause of bankruptcy in America is unpaid medical bills. The dirty secret is that three out of four people who file for bankruptcy after a serious illness or injury had health insurance before they were sick or hurt. When you're too sick or hurt to work, and cannot earn an income, how long can you keep paying your bills? This is the hidden risk, the most overlooked gap in personal insurance protection.

How can you cover this gap under "Obamacare?"

Paycheck Protection - technically called Disability Income insurance. This coverage replaces your income when you are too sick or hurt to work.

Fortunately, Disability Income insurance is VERY inexpensive. The most important thing to know is that you must purchase this protection BEFORE you get sick or hurt, and cannot work. Unlike "Obamacare" this is real insurance, and it is medically underwritten by an insurance company. The best time to purchase this coverage is when you are healthy, and have no pre-existing conditions. Premiums are also lower if you purchase this coverage at a younger age.

How much does it cost for Disability Income insurance to pay for your Obamacare Bronze Plan so that your health insurance does not lapse when you are too sick or hurt to work?

Example:  Female Cosmetologist (Barber, Beautician, Esthetician, Manicurist), Age 30, Non-smoker. 30 Day Elimination Period, $300 Monthly Benefit - Tax Free. The $300 per month benefit will pay your Obamacare Bronze Plan premium, when you are too sick or hurt to work, so that your health insurance coverage does not lapse.

Your Monthly Income

$2,000  $3,000  $4,000 

Obamacare Monthly Subsidy

$150 $29 $0

Bronze Plan Monthly Premium

$263 $263 $263

Bronze Plan Premium After Subsidy 

$113 $234 $263

Disability Income Monthly Premium

$6 $6 $6 3 Months of Protection

Disability Income Monthly Premium

$9 $9 $9 6 Months of Protection

Disability Income Monthly Premium

$11 $11 $11 12 Months of Protection 

Disability Income Monthly Premium

$14 $14 $14 24 Months of Protection

As you can see, the cost of covering your health insurance premium is VERY affordable, especially when you consider that the downside of not having Disability Income insurance could be personal bankruptcy, even though you purchased health insurance.

For a quote on a personal Disability Income insurance policy, call today (800) 680-5596.

 

Brent D. Gardner, CLU, ChFC