The new healthcare bill, recently passed by the U.S. Congress, is very complex and effects some people and businesses in many ways. The health insurance mandate is one section in the overall healthcare bill that strives to ensure everyone has some type of health insurance. While noble in its efforts, this provision has created a many health insurance misconceptions, making it difficult separating fact from fiction.

Current Health Insurance Holders will be Affected:

The first common misconception is that people who already have health insurance will be affected. The mandate only strives to have people who do not have any health insurance to purchase some type of policy. Current health insurance holders will not be required to change insurance providers or purchase additional coverage. In addition, people without coverage will not be required to purchase a policy until 2014. This gives everyone plenty of time to obtain coverage either through an employer or purchase a policy on their own.

Everyone Will be Required to Purchase Insurance

Health insurance misconceptions with regards to the health insurance mandate are common but another frequent misunderstanding is that people below the poverty line will be required to purchase insurance. The mandate does have two exemption clauses that allow someone to opt out of this requirement. The first simply states that if your income is below the poverty line you are not required to purchase health insurance. The second clause specifies that if the cheapest health care policy costs more than 8% of your annual income, you can also opt out of the health insurance mandate requirement. For example, if your annual salary is $22,000 and a yearly policy costs more than $1,760 you are not required to purchase it. Although this doesn't necessary achieve complete coverage for everyone, these clauses help by not adversely effecting the very poor.

Insurance Rates will Rise Dramatically

It is predicated that the health insurance mandate will cause a significant increase in health insurance rates for everyone, including current health insurance holders. Although the full effect of the health insurance mandate has not been reached many believe that rates will not dramatically rise. If someone is not able to obtain coverage from an employer there will be health insurance pools that someone can purchase insurance from. These pools will help spread the costs to insure healthy people as well as someone with an illness. The concept is similar to current plans purchased by businesses that provide coverage to many employees with varying health care costs.

Finding the right health insurance coverage is important and the new mandate strives to give everyone the opportunity to have health insurance, regardless of their income or health.