Rutgers Professor Explains Online Marketplace Aspect of Affordable Care Act

The Affordable Care Act, commonly known as “Obamacare,” establishes online marketplaces where millions of Americans who don’t have health insurance can sign up for coverage. The marketplaces take effect Jan. 1, 2014, but there will be an “open enrollment period” from Oct. 1, 2013 until the end of March next year.

Rutgers University recently published a report in which Joel C. Cantor, director of Rutgers’ Center for State Health Policy and a distinguished professor of public policy, answered questions and attempted to clarify any misconceptions about the Health Insurance Marketplace.

Cantor clarified that those who have health insurance through their employer are not eligible for, and don’t need to seek, coverage through the marketplace.

“In some cases where an employer offers only very limited insurance benefits people can get subsidies through the marketplace,” he added. “If you think that this might be the case for you, contact the marketplace and ask how to proceed.”

He said most people must have insurance, but victims of Superstorm Sandy are eligible to be exempt, and those who don’t purchase insurance and are not exempt will be charged a penalty on their income tax returns.

He doesn’t expect the price for coverage to change, although smokers may pay higher premiums. Those who currently have limited coverage will now have more comprehensive coverage, and thus, higher premiums, but that may be covered by the subsidies.

He said New Jersey would be expanding its existing Medicaid program so that “low-income people living below 133% of the federal poverty level (about $15,282 for a single individual) will be eligible for the program.” Sliding subsidies are also available to “people with incomes above the eligibility threshold for Medicaid but earning no higher than 400% above of the poverty level (about $45,960 for a single individual),” Cantor said.