Believe it or not, 2013 is half over. Once we begin the next half of the season, there are some big changes coming which could affect you whether you realize it or not. It wasn’t long ago when we had a big divide within our country over the healthcare reform and the passing of PPACA (Obama Care) in 2010. Since that time, there has been small changes occurring in the insurance industry, and almost certainly, your quality of life insurance policy. However, lots of these changes have gone unnoticed by most people.
That is focused on to alter! Starting January 1, 2014, four of the largest changes in the reform legislation are set to be implemented colorado health insurance marketplace. This is when the “rubber will meet the street” and all of it goes from theory into practice. If this can be a big success or another financial burden on our national debt, only time will tell. But, what’s important now’s to know what is expected of you and/or your business and which decisions are best for you.
The 4 biggest changes are:
Individual Mandate- The PPACA requires all American citizens and legal residents to buy qualified medical health insurance coverage. Or even, you then can pay a minimum fine of $95 as much as 1% of one’s household income. The fines escalation in 2016 to $695 per person or 2.5% of income as much as $2085.
Guaranteed Coverage- Coverage cannot be declined as a result of pre-existing conditions. For persons who have been unable to obtain coverage on the in-patient market as a result of pre-existing health conditions, they will now manage to get the exact same coverage and price as a healthy person the exact same age (smokers are charged additional).
Health Insurance Marketplace (Exchange)- For individuals and small businesses, the Federal government and some states will provide an Exchange to access medical health insurance as well as the traditional approach to an insurance agent/broker. Actually, some insurance agents/brokers provides plans both inside and beyond your Federal or State Exchange. The 2 important points are 1.) a person can only qualify for a subsidy and 2.) your small business can only qualify for the tiny business tax credit through a Federal or State Exchange. The Enrollment for the Exchanges opens October 1st this year.
Pay or Play Rule- For businesses with 50 (FTE/Full-Time Equivalent) employees or maybe more, an affordable “minimum essential coverage” health plan must certanly be provided for their employees or pay a fine. If a company does not provide qualified coverage, the penalty could be the lesser of ($2000 times the # of F/T employees minus 30) or ($3000 times the # of F/T employees that obtain a subsidy for coverage through the Exchange). This penalty is determined on a regular basis so can pay 1/12 those amounts times the # of months they are not in compliance.
They are the largest, but not even close to the sole, changes which can be to arrive 2014. How do you want to be affected? Have you any idea the most effective approach to take? For some, you might not see much difference. For anyone individual and businesses who want answers to your questions, my suggestion is always to speak with an agent/broker which is providing coverage both inside and beyond your Exchange to compare your alternatives and allow you to make the most effective decision.