Health insurance in America today

Health insurance saves you from paying huge amounts on your medical bill. By signing a contract with a health insurance company, you buy a plan which insures that the company pays a part of your medical expenses.

Understanding health insurance in America today

In America, health insurance helps pay the medical bills, whether it is a privately purchased insurance, a social one or through a welfare program funded by the government.

While most people in America get their insurance policy through their employers, purchasing an insurance plan is also an option. The most commonly used health insurance systems in America are the affordable care act/ObamaCare and Medicare; as only people who meet certain requirements can qualify for government health insurance.

Social welfare programs like Medicaid are also in place to provide assistance to people who cannot afford health coverage. Alternatively, social insurance programs such as Medicare are available to reduce the financial risks and pool the resources to protect everyone.


The Medicare Law was signed on July 30, 1965 by President Lyndon Johnson; it is broadly classified into two different types of insurance, i.e. hospital insurance and medical insurance.

The application for this insurance is based on the Social Security benefits. A notification for enrolment in the scheme is received shortly before a person’s 65th birthday. Medicare is paid for, through two trust fund accounts held by the U.S. Treasury.

The HI trust fund is funded through payroll taxes paid by most employees, employers and people who are self employed and other sources, like income taxes paid on Social Security benefits, interest earned on the trust fund investments, etc. The fund pays for:

  • Medicare Part A (Hospital Insurance)benefits, like skilled nursing facility care, home health care, inpatient hospital care, and hospice care
  • Medicare Program administration, like collecting Medicare taxes, costs for paying benefits

The supplementary trust fund(SMI) is funded by funds authorized by Congress, premiums from people enrolled in Medicare Part B (Medical Insurance) and Medicare prescription drug coverage (Part D) and other sources, like interest earned on the trust fund investments, etc. This fund pays for:

  • Part B
  • Part D
  • Medicare Program administration, like costs for paying benefits

The Patient Protection and Affordable Care Act (PPACA)/ObamaCare

The Patient Protection and Affordable Care Act (PPACA); also known as the Affordable Care Act (ACA) or “Obamacare”, is a United States federal decree signed by President Barack Obama on 23 March, 2010.

The aim of ObamaCare is to give Americans more affordable access to quality health insurance and to reduce cost of health care in America. ObamaCare does not replace private insurance or Medicare but offers a number of new benefits, rights and protection.

ObamaCare helps you get more preventive services for less and save money on branded drugs; provides support to your doctor through care coordination and ensures medical protection for years to come.

The Jordan Insurance Agency is the brainchild of Billy Jordan, who went through a great deal of frustrations when his mother was suffering from Stage 4 cancer. This Agency gradually grew with the passion of giving people access to the best possible health insurance coverage according to the budget. Blue Cross Blue Shield of North Carolina, Assurant Health, United Health One, and Coventry One are a few of the companies TJIA deals their contracts with. Feel free to call us today (704) 926-7565 or (800) 648-3870 and get your free quote from here!

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The Jordan Insurance Agency is a local & independent, multiple-line insurance agent in Charlotte that is focused on providing the best value for our client’s insurance needs. As expert insurance advisors, we are dedicated to thoroughly evaluating your risks and insurance needs, providing the best coverage plans that help protect your financial future.
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