Believe it or not, 2013 is half over. As we begin the second 50% of the season, there are a few big changes coming that could affect you whether you realize it or not. It wasn’t long ago once we had a huge divide in our country within the healthcare reform and the passing of PPACA (Obama Care) in 2010. Since that time, there have been small changes occurring in the insurance industry, and most likely, your wellbeing insurance policy. However, plenty of these changes have gone unnoticed by most people.
That is focused on to alter! Starting January 1, 2014, four of the biggest changes in the reform legislation are set to be implemented colorado health insurance. This really is once the “rubber will meet the street” and everything goes from theory into practice. Whether or not this is a big success or another financial burden on our national debt, only time will tell. But, what’s important now is to know what is expected of you and/or your organization and which decisions are best for you.
The 4 biggest changes are:
Individual Mandate- The PPACA requires all Americans and legal residents to buy qualified medical insurance coverage. Or even, then you definitely will probably pay the absolute minimum fine of $95 around 1% of your household income. The fines increase in 2016 to $695 per person or 2.5% of income around $2085.
Guaranteed Coverage- Coverage cannot be declined because of pre-existing conditions. For persons who have been unable to get coverage on the individual market because of pre-existing health conditions, they’ll now be able to get the same coverage and price as a healthy person the same age (smokers are charged additional).
Health Insurance Marketplace (Exchange)- For individuals and small businesses, the Federal government and some states will offer an Exchange to get into medical insurance in addition to the traditional method of an insurance agent/broker. Actually, some insurance agents/brokers can provide plans both inside and outside the Federal or State Exchange. The two important points are 1.) a person can only qualify for a subsidy and 2.) a small company can only qualify for the small business tax credit by way of 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 be provided for their employees or pay a fine. If a company doesn’t provide qualified coverage, the penalty would 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 set on a regular basis so will probably pay 1/12 those amounts times the # of months they are not in compliance.
These are the biggest, but not even close to the only real, changes which are arriving 2014. How are you going to be affected? Have you any idea the very best way of 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 having an agent/broker which is providing coverage both inside and outside the Exchange to compare your options and allow you to make the very best decision.