Believe it or not, 2013 is half over. Once we begin the second 1 / 2 of the year, there are some big changes coming which could affect you whether you realize it or not. It wasn’t sometime ago when we had a huge divide within our country on the healthcare reform and the passing of PPACA (Obama Care) in 2010. Since then, there were small changes occurring in the health insurance industry, and most likely, your health insurance policy. However, plenty of these changes have gone unnoticed by most people.
That is all about to improve! Starting January 1, 2014, four of the largest changes in the reform legislation are set to be implemented colorado health insurance marketplace. That is when the “rubber will meet the road” and everything goes from theory into practice. Whether or not this can be a big success or another financial burden on our national debt, only time will tell. But, what’s important now could be 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 Americans and legal residents to get qualified health insurance coverage. Or even, then you can pay the very least fine of $95 around 1% of one’s household income. The fines increase in 2016 to $695 per person or 2.5% of income around $2085.
Guaranteed Coverage- Coverage can’t be declined due to pre-existing conditions. For persons who have been unable to obtain coverage on the in-patient market due to pre-existing health conditions, they’ll now manage to get the same coverage and price as a wholesome person the 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 health insurance along with the standard approach to an insurance agent/broker. In fact, some insurance agents/brokers can provide plans both inside and outside the Federal or State Exchange. The two important points are 1.) someone can only qualify for a subsidy and 2.) a small business can only qualify for the little 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 inexpensive “minimum essential coverage” health plan must certanly be provided for their employees or pay a fine. If a business does not 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 decided 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 far from the sole, changes which can be coming in 2014. How do you want to be affected? Are you aware the very best approach to take? For a few, you might not see much difference. For those individual and businesses who desire answers to your questions, my suggestion is to speak with an agent/broker that will be providing coverage both inside and outside the Exchange to compare your alternatives and help you make the very best decision.