The PPACA, commonly known as “Obamacare” was signed into effect on March 23, 2010. This law put into place comprehensive health insurance reforms that were rolled out over four years and beyond. Some of these reforms were providing insurance for un-insured Americans, young adult coverage was extended to children up to age 26, covering more preventive services, and strengthening Medicare.
State and Federal marketplace exchanges opened for enrollment on October 1, 2013. Coverage for individuals that choose to enroll and pay for healthcare in the exchanges will begin on January 1, 2014. Open Enrollment will end for all individuals on March 31, 2014. Special enrollment may be an option for individuals that experience a life event such as a marriage, divorce, birth of a child, or loss of other coverage and enroll within 30 days from the date of the life event.
If you have insurance already through your employer, you don’t need to do anything as you are already considered covered. If you choose to come off your employer’s health plan and shop for a new plan in the marketplace, you can. But you will need to compare the two plans and see what plan will be more beneficial for your situation. Keep in mind: most employees who have access to coverage through their employer will not be eligible for the tax credits offered to help pay for a plan through the exchange. You might be better off staying on your employer’s plan.
Exchanges are going to be state-run marketplaces or federal-run marketplaces. This interactive map explains which states will be running their own exchanges or using a federal exchange.
Premiums through the exchanges will be billed directly by the insurer of the plan that you choose. The terms “Marketplace” and “Exchange” both mean the same thing. Each state will have a open “marketplace” or “exchange” to choose the best health insurance plan to fit their needs. Price will depend on the plan chosen, services provided, and whether you will receive a tax credit to pay for your plan. You will be able to choose if you want to use your tax credit right away when you sign up to help lower your premiums, OR you can use them in the form of an estimated tax refund.
Starting in 2014, an uninsured person may be required to pay a penalty for not having health insurance (some exceptions have been written into the law) for tax returns filed the following year. The penalty will be either a minimum of $95, or 1% of adjusted income – whichever is greater. Those penalties increase year after year.
Details of the PPACA are found on www.healthcare.gov or you can call 1-800-318-2596 and speak with someone live. One benefit of using Solution Services is our ability to navigate through Healthcare Reform for our clients and employees.
