5 Important Facts about Obamacare

Open enrollment for health insurance is about a month away, and in preparation for this, I wanted to

share a few facts about how the Affordable Care Act(ACA) affects health insurance.


#1 If you want health insurance for 2016, you have to enroll between November 1st and January 31st. For 2015, there were a couple of extensions added on, but there is no guarantee there will be any extensions this year. If you do not enroll in health insurance during open enrollment, you will not be able to purchase health insurance mid year, unless you are within 60 days of a Qualifying Life Event. For a list of qualifying life events see our past blog article. You also cannot make any changes to a policy mid year without a qualifying life event.  This means that you need to try to plan ahead for 2016. While we can't predict how often we will get sick, or whether we will be injured, there are things that we can try to plan for. Are you going to be pregnant, or having a baby in 2016? Is there a major procedure that you will need done within 2016? While shopping for a health plan for 2016, keep these factors in mind. You may want to pay a little more in premium to save you from having to pay a large deductible. I can't tell you how many people I've talked to this year that were not aware that they couldn't enroll in health insurance until open enrollment. Don't put this decision off until the last second. Choosing a health insurance plan is an important choice, and there is now limited time to make a choice.

#2 If you are in a "grandfathered plan", you cannot make any changes to your health insurance. A "grandfathered plan" means that the plan was in effect before the ACA was signed into law. President Obama had promised that anyone who wanted to keep the plan they were on prior to the ACA, would be able to keep it without changes to their benefits or premiums. Initially this did not happen, but upon being reminded of this promise, President Obama negotiated to have this brought about. However, if you make any changes to the plan, such as dropping one of your children off of your family plan, the insurance company is not required to continue providing that plan at the cost pre-ACA. In many cases, this means the premiums will double in cost for the same benefits you had before. If you have one of these plans, you need to be aware of the consequences of making any changes to the plan.

#3 Lawfully Present Immigrants are eligible to purchase health insurance on the Marketplace. Many immigrants that are in the U.S. legally are eligible for federal subsidies when purchasing health insurance. This includes people that have a "Green Card", or Lawful Permanent Resident status. Refugees and people that are in the U.S. that have been granted asylum can also purchase health insurance on the Marketplace. Also, people that have a work visa or student visa are eligible for federal subsidies. If you are a documented immigrant in the United States, then more than likely, you can enroll in health insurance through healthcare.gov. For a full list of eligible immigrants, click here.

#4 Everything depends on your taxes for 2016. The main idea is your estimated income for 2016 will decide what your premiums for health insurance for 2016 will look like. If you are interested in getting a federal subsidy to help cover the cost of your health insurance, then you will need to make a guess as to how much you think that you will make in 2016. If you're married, you will need to use your estimated combined income. You will also be asked how many people you will file on your tax return for 2016. Its a lot like filing for Medicaid. The government has decided how much income is required to support a family of 3 members, 4 members, 5 members, and so on. If the income is within a certain range, then you will qualify for a subsidy. However, you can make too much money for a subsidy, and you can make too little money for a subsidy. The difference can be as little as $1000 a year, so you can fiddle around with your projections a little and see a big difference in your premiums. If you make too little money for a subsidy, they will recommend that you enroll in Medicaid. I won't get into the "black hole" right now,  for more details on that issue, see our past blog article.

If you find that you are on the edge of being eligible for a subsidy(and you want/need that subsidy) you can adjust your projections to get that subsidy, and then you will simply have to make sure that you don't make more or less money in 2016 than your projection. Any change in your income, whether you get a new job, get a raise, or lose your job, should be reported to the Marketplace, and they will adjust your premiums accordingly. A key concept of health insurance has changed from the ACA: you are no longer rewarded for being healthy and not filing many claims with lower premiums. How much you pay for health insurance is directly based on how much money you make in a given year.

#5 If you do not enroll in health insurance for 2016, you will be penalized on your taxes for that year. For 2015, the penalty for not having health insurance will be either 2% of your annual family income, or $325 per person($162.50 for children under 18) for the year, whichever is higher. You will see this charged to you in taxes, or subtracted from an return you may be eligible for. For 2016, the tax penalty will go up to 3% of your annual income. This percentage is only taken on the amount of your income above the tax filing threshold for your bracket. The penalty will continue to increase each year. Many people will notice that the penalty is still far less than what they would pay in premiums for the year. However, going without health insurance is a very risky decision sickness and accidents are unpredictable and can cripple you financially in a very short time.


Health insurance is tricky at best, and the ACA does not make things any simpler. If you have questions about how Obamacare will affect you, feel free to call the office, or email me. Get ready for Open Enrollment folks! Its coming up fast!

13 Ideas For Getting Through College Without Debt

College tuition continues to climb, and many students go into debt trying to pay for their education. As our young people leave the nest and start lives of their own, unfortunately many are starting out acrruing debts that they will struggle to pay for years after graduation. We want our college students to look forward to years of success free from the bondage of student loan repayment. Dan Zeller wrote down 13 Tips for getting through college without debt, and I filled in the details, and I would like to post this disclaimer: These tips will only work for a student that is dedicated to getting through college without accruing debt.


#1 Summer Jobs
Young people that are determined to go to college should start saving as soon as they are able. Not only should they be working between college semesters, but summer jobs during highschool can help a lot to save while they are still living at home. Many companies offer "seasonal work" and even actively seek young people to hire for the short term. Besides that, "I'm trying to work to save money for college" is a great line, and is bound to charm a potential boss in an interview.

#2Work and School Combined For many students, working and going to school is a necessity, not a decision. However, even if you don't have to work while attending school, you should consider working while going to college for other reasons. For one thing, the added time pressure of a work schedule on top of a school schedule will keep you busy and out of trouble. Secondly, even if you don't need help paying for school now, you will need the money in the future for post-graduate school, a car, or for emergencies. Like I said, though, many students need the income during college to either pay for school, or to support themselves while attending college.

#3On-Campus jobs are a great way to earn money and to interact with other members of the student body. On-Campus jobs usually come with a maximum number of hours(maybe 20 hours) each employee can work a week, which is great, because there is no worry that you will over-schedule yourself. Campus jobs are also nice because it saves bus fare or gas money to get to work. Campus jobs can be hard to get due to popularity, so apply early and be diligent in your pursuit. If you can't land an on-campus job, never fear. Businesses in a college town are used to working with student schedules. Once again, it is not a good idea to wait until the semester begins to start applying for jobs in and around campus. Another option at some schools similar to on-campus jobs, is a work/study program. These are part-time jobs offered through the university and are usually offered on a needs-based system. In a work/study program, the money you earn while working goes directly to paying for tuition.

#4 A Worker Friendly Class Schedule Some students attending college full time will have a couple of morning classes... then maybe a class mid-afternoon...and each day their schedule is a little different. While that may keep things interesting and keep you from rushing from one class to the next, it is hard to fit a job into those odd intervals. While students can't always control what time a class they are taking is offered, a working student should do their best to organize their schedule so that they can be free either in the mornings, or free after a certain hour in the afternoon so that their workplace can easily fit them into a work shift. Working students should also consider that they will need time during the day to study, and adequate time to sleep so that they are not too tired to pay attention in class. Try to create a good balance. Decide how many hours a week you need to work, and how many hours of class you need to take each semester to meet your goals.


#5 Budgeting Learning to live on a budget is a harsh lesson for many young people. Its so tempting
 to take new found freedom and give into impulse buying and frivilous expenditures. However, if they can teach themselves to live within their means and avoid unnecessary spending, they will find that they can live on very little money.

#6 Housing While none of us want our youth living in sketchy neighborhoods, run-down apartments, or living with questionable people, they also don't need to live in ritzy apartments with their own bathroom and Jacuzzi. Consider dorm living, if available, as an affordable option. Living on campus can eliminate some driving, which will save gas money. Meals, also, can be cheaper on a school meal plan versus doing your own grocery shopping. If you decide to live in an off-campus apartment, get as many roommates as you can to cut down your portion of the rent and utilities. Be modest in your selection of apartments. You're going to school, you're not on vacation-a community pool is not a necessity.

#7 Grants(Pell) This is as close as you will ever get to free money. Pell Grants are funds that the government provides for financially eligible students to pay for college. Unlike loans, Grants to not have to be repaid. Students who meet the grant requirements receive a specified amount each year. To find out if you are eligible, you fill out the FASFA form. For more info about Pell Grants, click here.

#8 Scholarships There are a wide variety of scholarships out there for the taking. Applying for scholarships takes a lot of time and effort, but is worth all the paperwork and interviews. Check for locally available scholarships in your community. Many local organizations and charities set up scholarship funds. For instance, Dan participates in the Rotary Club, which is a charitable organization that has many chapters world wide, and offers academic scholarships to their communities. For those students that already have a clear future occupation or field of study selected, there are many interest specific scholarships available. A well-known example is the NC Teaching Fellows Program, which was a state funded organization dedicated to helping students become teachers in North Carolina. While this specific program is ending, there are many organizations like this to help students afford the schooling they need for a specific occupation or interest. It is also important to check with the college you are looking at for scholarship opportunities that they offer. Some scholarships are needs based, while others are based on academics or athletics. Your high school counselor is great source of help and guidance while searching for scholarships.

#9 Buying Books on the Cheap(or Renting Textbooks) Never buy a brand new textbook unless you absolutely have to. First of all, if you have the opportunity, talk to the professor about how much he or she utilizes the textbook. There is nothing more frustrating than spending a lot of money on a textbook, and then never opening the book! Secondly, there are so many websites that offer used textbooks, and renting textbooks is really the best option. As an example I selected a popular textbook off of Chegg.com, The Art of Public Speaking by Stephen Lucas. The retail price on this book is $173.33. Chegg.com offered to let me rent the book for $20.49. Amazon.com offered to let me rent the book for $19.49, or I could buy the book used for as low as $25.99. No one should be paying full price for this text book! Just rent the book, and send it back to the company by the due date. Most sites will even allow you to minimally mark in the text book, so feel free to highlight key terms and definitions!


#10 Community College In North Carolina, the 2015 average full time tuition for a community college is around $1000 or less per semester. Community College is awesome in so many ways. Not only is it a fiscally responsible choice for tuition costs, community colleges offer many more night classes than your typical four-year university, allowing you to more easily fit work and school into your schedule. If you're lucky, you may even be allowed to live at home, thus saving money on rent and food. Community colleges frequently partner with a larger university, allowing you to get the degree you want for significantly less money. And, if you need to, you can transfer to a four-year school to earn a specific degree after first getting those pesky general education classes out of the way at your local community college. Community colleges also offer a lot of great career prep courses that you may not find at a big university. I have to say, community college is a pretty spectacular option.

#11 State Colleges Public State Funded Colleges are definitely the next best choice after Community College as far as price goes. The average North Carolina state university tuition per semester is usually between $1900-$2200. When combined with our other tips, this can be very affordable.

#12 Private Colleges While Private Colleges are generally more expensive than other college options, they also sometimes have many high value scholarships available to lower the overall costs. If you have a private university in your sights, explore the scholarships offered by the school to see if you can significantly cut the cost.

#13 Short Term Loans We will call these pay-as-you-go loans. If you do need loans to help you afford college, consider a loan that you make monthly payments on while you are attending school. These pay-as-you-go loans are usually offered through the university and have almost 0% interest. With a pay-as-you-go loan, you can pay the loan off right away, so you don't have a massive amount to tackle after graduation. Simply pay monthly during the semester(which you can do because you are working and going to school), and at semesters end you will have paid off the loan.

I want to assure students that when using these tips there will still be plenty of time for fun and socializing with your peers while at college. Enjoy your time in college, but also know that you are preparing for your future life, and you should prepare well. Mistakes at this time can have a ripple effect on the rest of your life. However, if you can achieve a proper balance in college, you will succeed and be happy. Good luck!