Believe it or not, 2013 is half over. As we begin the 2nd 50% of the entire year, there are several big changes coming that will affect you whether you realize it or not. It wasn’t long ago once we had a huge divide within our country over 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 probably, your wellbeing insurance policy. However, a lot 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. This is when the “rubber will meet the road” and it all goes from theory into practice. Whether this can be a big success or another financial burden on our national debt, only time will tell. But, what’s important now’s to know 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 American citizens and legal residents to purchase qualified medical insurance coverage. If not, then you definitely will 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 can not be declined because of pre-existing conditions. For persons who’ve been unable to get coverage on the in-patient market because of pre-existing health conditions, they’ll now have the ability to get exactly the same coverage and price as a wholesome person exactly 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 get into medical insurance as well as the traditional method of an insurance agent/broker. In fact, some insurance agents/brokers will provide plans both inside and beyond your Federal or State Exchange. Both important points are 1.) an individual can just only qualify for a subsidy and 2.) a small company can just only qualify for the tiny business tax credit via 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, an affordable “minimum essential coverage” health plan should be provided with their employees or pay a fine. If a small business doesn’t 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 regular basis so will pay 1/12 those amounts times the # of months they’re not in compliance.
They are the largest, but not even close to the only real, changes that are arriving 2014. How do you want to be affected? Have you any idea the most effective method of take? For some, may very well not see much difference. For those individual and businesses who would like answers to your questions, my suggestion is to speak having an agent/broker that will be providing coverage both inside and beyond your Exchange to compare your choices and assist you to make the most effective decision.