As a result of the advent of Obamacare, many Americans were filled with high hopes that they would encounter more affordable health insurance rates. However, for some, optimism quickly diminished after discovering the healthcare coverage options under Obamacare..

A small business owner in California recently found out that she earned a bit too much to be considered for federal subsidies, which would help with her purchase to participate in Covered California, the state’s new healthcare exchange. Furthermore, her current rates have shot up almost 10 percent, due to the fact that policies are required to undergo an upgrade in accordance with the new law.

This small business owner is among many other Americans who currently purchase coverage on their own terms, but will now be forced to find new coverage as a result of their current policies being rendered outdated by the health law. Consequently, millions of Americans are finding that the new plans offered through the Affordable Care Act are not exactly affordable.

Covered California was created to aid more than 5 million Californians who were uninsured or purchased healthcare on their own terms. However, although federal tax credits are readily available to help reduce coverage costs incurred in the new healthcare marketplace, more than half of the consumers served by the initiative won’t even qualify for coverage.

Lastly, individuals enrolled under Covered California may see an increase in the cost of premiums. This would be due to two influential factors: a prohibition enacted on denying coverage to people with pre-existing medical conditions beginning Jan. 1, and the new requirement for policies sold next year to cover a minimum number of benefits.