How the New Healthcare Bill May Affect Your Personal Finances

The new healthcare bill, or more formally, the Patient Protection and Affordable Healthcare Act, is changing more than just the way country approaches health care - it's also changing the way most people look at their finances.

Although the healthcare bill is more complex than this, a few key features include:

Coverage for older adult children. In the past, children over the age of 19 haven't been able to be covered on their parents' insurance. This will be moved up to 26 years of age.

- You can't lose coverage for being ill or having a pre-existing condition. Insurance companies will be held more accountable for providing coverage during times of poor health, even if health conditions are chronic.

- There will be no caps on insurance coverage. If you're willing to pay higher premiums for increased insurance coverage, you can be covered even in the face of long-lasting or expensive treatments.

- Insurance will be required. If your employer doesn't provide coverage, you must purchase a plan or qualify for government assistance. Not having insurance may result in fines and fees.

- The more you earn, the more expensive your insurance. Medicare payroll taxes will increase for families that make more than $250,000 per year.

In a nutshell, all this means is that over the next few years, individuals will be required to be more responsible for their own health care coverage - and insurance companies will be required to provide coverage regardless of your health background.

From a personal financial standpoint, this may mean that you'll be required to spend more on insurance than you're used to - and that's where most of the concern comes in. Traditionally, healthcare coverage has either been provided by your employer, paid for by the government, or simply not been there at all. While the first two scenarios may still come into play, you no longer have the option of not being covered. This may mean that you could end up paying anywhere between $100 and $2,000 per month in out-of-pocket expenses to cover yourself and your family.

Looking at these numbers can be a little scary. After all, in this tough economy, an additional $400 monthly payment might be more than you can handle. That's why it's fortunate that almost all the healthcare bill issues introduced on the bill operate on a sliding scale, in which lower income families (under a $117,000 annual threshold) will receive government assistance in purchasing and maintaining insurance coverage. Theoretically, employers will also be paying lower amounts of coverage for their employees, as well, and those savings may be passed on in the form of higher salaries and bonuses.

The good news is that these changes will be made gradually and with an "adjustment period" as businesses, families, and the government get used to the new system. Working with a financial advisor who can help you set up a budget that takes into account the new monthly premiums can also allay some of your fears - especially since you and your family should be looking forward to more comprehensive coverage regardless of your financial or health-related background.

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