Believe it or not, 2013 is half over. Even as we begin the second half of the season, there are several big changes coming that may affect you whether you realize it or not. It wasn’t way back when whenever we had a huge divide inside our country on the healthcare reform and the passing of PPACA (Obama Care) in 2010. Ever since then, there were small changes occurring in medical insurance industry, and most likely, your quality of life insurance policy. However, lots of these changes have gone unnoticed by most people.
That is focused on to change! Starting January 1, 2014, four of the biggest changes in the reform legislation are set to be implemented colorado health insurance marketplace. This is once the “rubber will meet the road” and it all goes from theory into practice. Whether this is a big success or another financial burden on our national debt, only time will tell. But, what’s important now is to understand what is expected of you and/or your company and which decisions are best for you.
The 4 biggest changes are:
Individual Mandate- The PPACA requires all American citizens and legal residents to purchase qualified medical health insurance coverage. If not, then you definitely can pay the very least fine of $95 as much as 1% of your 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 due to pre-existing conditions. For persons who’ve been unable to get coverage on the individual market due to pre-existing health conditions, they will now have the ability 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 along with the standard method of an insurance agent/broker. In reality, some insurance agents/brokers provides plans both inside and away from Federal or State Exchange. The two important points are 1.) someone can only just qualify for a subsidy and 2.) a small company can only just qualify for the small 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 more, an inexpensive “minimum essential coverage” health plan should be provided for their employees or pay a fine. If a small business 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 can pay 1/12 those amounts times the # of months they’re not in compliance.
They are the biggest, but far from the only, changes which can be coming in 2014. How will you be affected? Do you know the most effective approach to take? For a few, you might not see much difference. For anyone individual and businesses who want answers to your questions, my suggestion would be to speak by having an agent/broker that’ll be providing coverage both inside and away from Exchange to compare your alternatives and allow you to make the most effective decision.