Believe it or not, 2013 is half over. Even as we begin the second half of the year, there are some big changes coming that will affect you whether you realize it or not. It wasn’t long ago when we had a big divide in our country over the healthcare reform and the passing of PPACA (Obama Care) in 2010. Since then, there has been 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 about to improve! Starting January 1, 2014, four of the largest changes in the reform legislation are set to be implemented colorado health insurance. This is once the “rubber will meet the road” and all of it 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 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 American citizens and legal residents to buy qualified medical health insurance coverage. Or even, then you definitely can pay the very least fine of $95 as much as 1% of one’s household income. The fines upsurge in 2016 to $695 per person or 2.5% of income as much as $2085.
Guaranteed Coverage- Coverage can not be declined due to pre-existing conditions. For persons who’ve been unable to obtain coverage on the individual market due to pre-existing health conditions, they will now manage 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 provide an Exchange to access medical health insurance in addition to the standard approach to an insurance agent/broker. In fact, some insurance agents/brokers will give you plans both inside and outside the Federal or State Exchange. The two important points are 1.) someone can just only qualify for a subsidy and 2.) a small business can just 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, a reasonable “minimum essential coverage” health plan should be provided to their employees or pay a fine. If a small business 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 monthly basis so can pay 1/12 those amounts times the # of months they’re not in compliance.
These are the largest, but definately not the only, changes that are to arrive 2014. How do you want to be affected? Do you know the best approach to take? For some, you might not see much difference. For those individual and businesses who would like answers to your questions, my suggestion would be to speak having an agent/broker which will be providing coverage both inside and outside the Exchange to compare your alternatives and assist you to make the best decision.