The new health care reform or Obamacare was rolled out on October 1, 2013. Unless you have been hiding under a rock for the last couple months you probably have some knowledge of this new change. What most people don’t know is the basics of how it affects you.

1. The uninsured will have affordable options. With the open enrollment starting October 1, 2013 uninsured Americans can start shopping for affordable health insurance using any of the online health insurance marketplaces.
2. Insurance will be expanded. Pre-existing conditions will no longer exist. The reform makes it so that no individual can be denied health insurance because of pre-existing conditions. Young adults can also stay on their parents’ insurance plan until age 26.
3. You may be eligible for a government subsidy. If you purchase health insurance through an online insurance marketplace or exchange and your yearly income is no more than $45,960 for individuals, or $94,200 for a family or four you may be eligible for a government subsidy to help pay for insurance. The subsidy will come in the form of a tax credit.
4. You may receive a penalty if not insured by March 31, 2014. If health insurance isn’t purchased by this date you will receive a penalty on your 2014 tax return (filed in 2015). The penalty for 2014 is $95 per adult and $47.50 per child, and the fee is capped at $285 or 1 percent of household income. Every tax year the penalty will increase.
5. If you have health insurance, you are already covered under the law. Not everyone needs to purchase health insurance through the online marketplaces. If you already have eligible health insurance you are all set.