The Federal Funding Bowl

Basic Health Insurance – The Federal Funding Bowl

The State of Florida has long been a model of fiscal responsibility. Florida’s elected leaders have repeatedly committed to maintaining and increasing the amount of money available to Florida citizens through a combination of revenue growth and prudent spending. Unfortunately, some of those efforts haven’t been successful. Florida’s budget has been severely impacted by a lack of progress in some areas. In this article, we’ll examine some ways the Basic Health Insurance plan can help you address the problems.

 

Florida’s low-income residents face many financial risks

not the least of which is rising health care costs. Under the Basic Health Plan, the state agrees with one or several private insurance providers to offer low-income residents inexpensive coverage. Payments are generally held in perpetuity, with interest-only paid on the portion of premium that exceeds a specific target. Premiums are also set at reasonable levels, and the policy is broad, providing coverage to nearly everyone with income less than 150% of the national poverty level and up to gold-level coverage for those with income over that level. Financial risks are minimized through the creation of marketplaces.

 

Marketplaces are available to anyone who would qualify.

For people with incomes below the poverty level and those who want additional coverage, premiums are required to be paid on a per-person basis. Premium amounts vary based on age, family size, gender, health history, and current health coverage status. For people who do not qualify for the basic health program, markets exist for individuals and families to purchase additional health coverage.

 

Premium tax credits and cost-sharing reductions

can also help lower the uninsured rate for some individuals. The Health Insurance Rate Authority Act, passed by Congress in 1996, provides tax incentives for health plan provisions that reduce premiums. Because many people purchase their health plans, subsidies are particularly important for small businesses and self-employed consumers.

 

As described above

federal funding plays a large role in the affordability of premiums. In addition, there are several programs administered by state governments, including Medicaid and the State Children’s Health Insurance Program (SCHIP), that provide additional support to low-income families. CHIP pays a portion of the cost of medical care for children; Medicaid covers medical care as well as other benefits for eligible families, including prescription drug costs. Both programs are jointly funded by the federal government and each state. To be eligible for Medicaid and SCHIP, an individual must meet certain income and resource limits.

 

incentive By definition

an individual who earns below a specific income level is considered to be a poor person. For ages eighteen and above, the income limit is around half of the national poverty level for a family of four or a total of $12,600 or less for a single individual.

 

Some people are concerned about the rising cost-sharing subsidies

for insurance in the New York State area. These concerns are well-founded, as the premiums for a family plan can reach up to a hundred percent of household income for some families. Fortunately, there are things that families can do to reduce the impact of these costs, such as by increasing the number of people enrolled in the family plan, reducing the age of the family, reducing the amount of coverage, reducing the number of adults in the family, changing health risk factors, and more. All of these things can collectively bring down the average premium cost by up to forty percent.

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