10 Facts About Obamacare & How It Will Affect You

Presented by Nick Bautista

August has ended and we have four months until Obamacare goes into effect. So what is Obamacare?

The overall goal is to provide affordable health insurance for all U.S. citizens and reduce the growth of health care spending. Obamacare does not replace private insurance, Medicare , Medicaid or employer sponsored plans. Instead look to see small changes in the insurance landscape via these 10 facts:

      1. Starting January 1^st 2014, insurance will be sold on health insurance exchanges, although you can still purchase an individual plan through health insurance companies (through a broker)
2.    With the new exchange each state will now be responsible for its own health insurance marketplace
3.    Summary of benefits and coverage- will make it easier to compare cost for common items such as having a surgery, having a baby, etc.
4.   Already in effect but, kids under 26 are able to be on their parents health plan (whether they are married, living with them or not, full time student)
5.   No-cost preventive care coverage- get screenings, physicals, vaccinations at no cost (this may not be available on grandfathered policies)
6.   Already starting in August is the women’s preventive care services, which gives care to women for birth control, STI screenings and breast feeding. Also insurers can’t discriminate based on gender.
7.    No pre-existing condition limits in 2014. You cannot be turned down from individual plans for having a pre-existing condition. Note this doesn’t apply to group plans as group plans cancel out any pre-existing conditions you have.
8.   Medicare is working to close the gap on Medicare part D coverage. The program is meant to help you pay less for brand name prescriptions in the coming years.
9.    In 2014 you must have health insurance or you will be penalized, $95 per adult, $47.50 per child, up to $285 per family or 1% of your taxable income. (whichever is greater)
10.  Can’t afford insurance, there will be credits or subsidies for buying health insurance based on your income, based on these provisions: You're an individual making $14,856 to $44,680 or a family of four making $30,656 to $92,200, and You don't get coverage at work or have access to affordable coverage (meaning your plan costs more than 9.5% of your income).

Feel free to look at the Anthem Insurance website for more information, or contact me at nick@phillipswealthmanagement.com with any additional questions, comments or concerns.

Aim To Retire Comfortably, No Matter How Much You Make

Presented by Nick Bautista

When thinking about saving for retirement it is often forgotten that even if you don’t make a lot of money, you can still retire comfortably. Building saving habits and spending less than you make are some of the keys to success.

Too often I see young people not save any money when they get out of College, and this is usually the slippery slope to bad savings habits. The temptation to spend every penny made is so high that a majority of them don’t start saving until it’s too late. This unfortunately continues into adulthood as the thought of savings gets pushed to the side for a variety of reasons, (house, car, kids, kids’ college, etc.)

The principles for pursuing a comfortable retirement boil down to two simple rules.

         1.  Spend less than you make

         2.   Set aside money every paycheck no matter how much it is.

Doing both these things can help create good saving habits and help you get better aligned with your financial dreams.

So, think about how much are you saving in retirement; are you spending less than you make?