Health Insurance Marketplace or Exchanges now Open

Insurance Marketplace or Exchanges is now open. Affordable Care Act or the Obamacare gives you only two choices pay a penalty or buy health insurance. The insurance marketplaces are for those who are not insured and those who buy their own insurance (not provided by the employer).

If you already have insurance from work or through Medicare you don't need this exchanges. The Open Enrollment is from October 1, 2013 and closes on March 31, 2014.

Here are the points to remember:

• the Coverage purchased through the marketplace starts as soon as January 1, 2014. Because many of ObamaCare's benefits, rights and protections will take effect on 2014.

• There are three types of cost assistance available through marketplaces: Advanced premium tax credits which lower your monthly premium costs, cost sharing subsidies which lower your out-of-pocket costs for copays, coinsurance and deductibles, and Medicaid. Learn more about ObamaCare Cost Assistance.

• Cost assistance through the marketplace is available to Americans who make less than 400% of the Federal Poverty Level ($45,960 for an individual $94,200 for a family of four).

• The 2013 Federal Poverty Guidelines are used to determine cost assistance on the marketplace.

• Young adults can now stay on their parents health insurance plans until they are 26.

• Plans are presented in four categories – bronze, silver, gold, and platinum – to make comparing them easier.

The Insurance plans that are in the Marketplace are offered by private companies. They cover the same core set of benefits called essential health benefits. Insurance companies cannnot turn you away or charge you more for preexisting medical condition or illness. They must cover treatments for these conditions. Plans can't charge women more than men for the same plan. Many preventive services are covered at no cost to you. However, despite of these benefits many still decided to opt out.

The Opt Out Penalty is $95 fine per adult; $47.50 penalty per child; and a maximum of $235, per family. That, or 1% of your adjusted gross income; whichever is greater. It is also set to increase yearly. The penalty is still much cheaper than forking out  $300-$500 a month for insurance.