Medically Reviewed by Sarah Goodell on September 18, 2022
Written by Stephanie WatsonHealth care costs can add up quickly when you have a condition that never truly goes away, like type 2 diabetes or heart disease.
Wondering how health reform affects what's covered and what you'll pay? Here are some answers.
Most likely. All plans sold in the Marketplace, on the individual market, or through small employers must cover a list of essential health benefits, a rule that's part of the Affordable Care Act. The exception is grandfathered plans and short-term health plans. Grandfathered plans are health plans that existed before the Affordable Care Act was signed on March 23, 2010, that have not substantially changed. Short-term health plans are those that provide coverage for less than 12 months. Large employer health plans are not required to cover the essential health benefits, but most do.
One essential benefit is management for a chronic condition, such as asthma or diabetes. Most plans will help pay for:
Not necessarily. Each state can make decisions about what's covered. For each benefit, states decide what specific services and level of care the plans will cover. Each health plan for sale on the state's Marketplace must cover at least what the state chose.
Here are a few ways benefits can vary between states:
Look closely at the summary of benefits for any health plan you think you may enroll in.
That depends on what plan you choose and the specific design of the plan.
Your health plan has to limit the amount it charges you for your benefits. All plans (except those that are grandfathered) are required to limit out-of-pocket maximums to $8,700 for a single person and $17,400 for a family in 2022.
Prescription drug coverage varies with the type of plan you have. To see exactly what a plan covers, look at its summary of benefits and coverage, and its list of included drugs.
Be aware that plans may charge a separate deductible for prescription drugs in addition to the one they have for other medical care.
Most people will have to pay less for generic medicines than for brand-name drugs.
You probably won't pay the same amount for all brand-name drugs either. Many plans cover medicines by tiers. The higher the tier number, the more the medicine will cost you. For instance, a tier-3 medicine costs you more than a tier-1 medicine.
Take time to look at the drug formulary -- a list of prescription medicines a health plan covers -- for any plan you are considering so you can anticipate your drug costs.
If you have a Medicare Part D plan to help cover the cost of your prescription drugs, the Affordable Care Act helps to lower your expenses for medicines when you are in the so-called donut hole.
The donut hole is a gap in coverage that starts when you reach your plan's drug-spending limit. In 2022, once you and your plan have spent $4,430 on covered drugs, you're in the coverage gap. At that point, you have to pay the full cost of your medications.
You used to be responsible for the full cost of your drugs once you were in the coverage gap, but now you'll pay only 25% of the cost of drugs that are covered under Medicare Part D.
No. Whether you bought insurance on your own or you got it through your job, insurance companies can no longer set yearly or lifetime limits on how much they will pay toward covered essential benefits.
Chronic disease management programs are covered by plans sold on the Marketplace, in the individual market, and through small employers. They are part of the essential health benefits the Affordable Care Act requires health plans to cover. Many health plans from large companies also help pay for these programs.
To know for sure how much a plan covers, you can look at the plan's summary of benefits and coverage. This summary includes:
The law also put in place these protections:
