Believe it or not, 2013 is half over. Once we begin the second half of the entire year, there are several big changes coming that may affect you whether you realize it or not. It wasn’t sometime ago when we had a big divide inside 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 medical insurance industry, and almost certainly, your health insurance policy. However, lots of these changes have gone unnoticed by most people.
That is focused on to alter! Starting January 1, 2014, four of the largest changes in the reform legislation are set to be implemented colorado health insurance marketplace. This really is when the “rubber will meet the street” and it all goes from theory into practice. If 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 American citizens and legal residents to purchase qualified medical insurance coverage. If not, then you definitely can pay the absolute minimum fine of $95 as much as 1% of your 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 as a result of pre-existing conditions. For persons who have been unable to get coverage on the person market as a result 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 access medical insurance as well as the original way of an insurance agent/broker. In reality, some insurance agents/brokers will 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 business can 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 more, a reasonable “minimum essential coverage” health plan must certanly be provided with 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 set on a regular basis so can pay 1/12 those amounts times the # of months they are not in compliance.
They’re the largest, but not even close to the only real, changes which are to arrive 2014. How can you be affected? Are you aware the very best method of take? For many, may very well not see much difference. For anyone individual and businesses who would like answers to your questions, my suggestion is 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 very best decision.