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Health care has always been a concern for most Americans. The cost of health care continues to rise, and along with it, the cost of personal health care. Although Obamacare claims to be an aid to all Americans, it is uncertain how this new legislation will affect consumers. For those people who happen to have substantial incomes, the cost may not be of concern, but for those who rely on a tight budget to make ends meet, Obamacare may present some serious challenges.
Obamacare
Consumers are faced with many decisions each day regarding how they spend their incomes. However, the new Obama health care reform legislation is leaving many with feelings of uncertainty about the cost of the program. Because the new law requires people to get health insurance, there is speculation about the consequences of being uninsured. For those people who are living a paycheck-to-paycheck existence, being forced to pay for healthcare that they can’t afford is a real concern. There are several pros and cons to Obamacare, and many consumers, along with the medical community, will learn about the program as they go. Here are some Obamacare pros and cons:
Pros
- Fewer uninsured. The legislation is designed to reduce the number of people who do not have health insurance. It is estimated that 32 million Americans do not have health insurance.
- College students. Unlike many other health care programs, Obamacare will allow college students to stay under their parent’s health care program until they are age 26.
- Fewer medical bankruptcies. The largest cause of bankruptcy in the country is due to medical costs. Even with insurance, medical costs extend beyond the typical healthcare plan. This often forces people to file for bankruptcy as they are unable to pay for the medical care.
- Pre-existing conditions. For those people who have a pre-existing condition, insurance companies are not permitted to drop them because of sickness.
Cons
- Medicaid. It is estimated that 18 million of those currently uninsured will be placed on Medicaid, which is already stressed beyond capacity.
- Medicare. The primary program covering senior citizens will be cut by over $528 billion.
- Taxes. Higher income people will see an increase in their taxes.
- State’s rights. The legislation appears to violate the State’s Rights provisions of the U.S. Constitution.
Budget Basics
Obamacare is a concern for many, but for those who are seeking health insurance, learning how to budget so that they can afford it is an important goal. Regardless of the types of bills you might have, learning how to set up a budget will help you be better prepared for dealing with expenses. A well designed budget can not only help you keep your bills paid on time, but also begin to help you establish a savings plan that will begin to free you from the paycheck-to-paycheck lifestyle. Learning how to make a budget can help you in many ways.
Budgets do not need to be elaborate or complicated. As long as it is organized so that you can see what you owe, when you owe it, how much you are able to pay, and when you can make the payment, it should provide you with the guidance you need. The most important idea behind budgeting is to have a plan established for paying your bills and then sticking to the plan. It is this last part that seems to cause most people problems. Learning some self-discipline is essential for making a budget work, especially when money is tight.
Checking Your Credit
Being able to use credit is an important part of most people’s finances. Although going into debt when your finances are limited is rarely a good idea, knowing how to examine your credit so that you understand how it works can be a prudent step. You should do a credit score check to see exactly where you stand regarding credit.
You can order your credit report for as often as you like from each of the three credit bureaus. You should do so periodically throughout the year so that you can check it for accuracy. Reviewing your credit report can help you better understand why your credit score is where it’s at.
Regardless of whether Obamacare raises your health care costs or not, having a well -established budget will help you manage your expenses. Not only will a budget guide you on how to deal with your finances, but it will eventually lead you to a savings program that will give you more security in the future. One practical step to get you going in the right direction is to review your credit score on a regular basis.
