Believe it or not, 2013 is half over. Even as we begin the second 1 / 2 of the season, there are a few big changes coming that will affect you whether you realize it or not. It wasn’t way back when we had a big divide within our country on the healthcare reform and the passing of PPACA (Obama Care) in 2010. Since that time, there has been small changes occurring in the health insurance industry, and almost certainly, your wellbeing insurance policy. However, a lot of these changes have gone unnoticed by most people.
That is about to change! Starting January 1, 2014, four of the largest changes in the reform legislation are set to be implemented colorado health insurance. That is when the “rubber will meet the street” and it all goes from theory into practice. If 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 organization 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 medical health insurance coverage. Or even, then you can pay the very least fine of $95 up to 1% of your household income. The fines upsurge in 2016 to $695 per person or 2.5% of income up to $2085.
Guaranteed Coverage- Coverage can not be declined because of pre-existing conditions. For persons who’ve been unable to get coverage on the average person market because of pre-existing health conditions, they’ll now manage to get the same coverage and price as a healthier 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 get into medical health insurance in addition to the original way of an insurance agent/broker. In fact, some insurance agents/brokers will give you plans both inside and beyond your Federal or State Exchange. The two important points are 1.) an individual can just only qualify for a subsidy and 2.) a small business can just only qualify for the tiny 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 even more, a reasonable “minimum essential coverage” health plan should be provided with 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 decided on a monthly basis so can pay 1/12 those amounts times the # of months they are not in compliance.
They’re the largest, but definately not the only, changes which can be to arrive 2014. How will you be affected? Do you know the very best approach to take? For many, may very well not see much difference. For anyone individual and businesses who desire answers to your questions, my suggestion is 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 very best decision.