October 1st is a significant day in US Healthcare history, the first true step in the implementation of the Affordable Health Care Act.
October 1st is the first day that Uninsured Americans may purchase health insurance from health care exchanges. The coverage begins January 1st, 2014 - the enrollment period lasts through March 31st.
What are the effects on employees and businesses?
* Effective January 1st, 2014, most people, with exceptions, will be required to have health insurance or pay a penalty if they don't. The penalty starts at $95 or 1% of your annual income - whichever is higher - and is phased in over time to $695 or 2.5% of income by 2016.
* If you as an individual have job based insurance.......If you like it, you can keep it. You're considered covered. If you don't like the plan, you may be able to change to marketplace coverage by exploring the options and enrolling in a new plan. But be careful, most people with job provided insurance will not qualify for subsidies for coverage through the exchange.
* If you are a full time employee.......The law requires most employers to provide affordable minimum essential health insurance coverage to full time employees or face financial penalties (beginning in 2015). Full time is defined as at least 30 hours per week.
* What employers are affected?........The provisions mandating coverage apply to 'large' employers with 50 or more FULL-time employees. Employers failing to comply, can face penalties (again, beginning in 2015).
Small businesses, with fewer than 50 full time employees, do not have to provide coverage to their employees nor are they subject to financial penalty. Businesses with fewer then 25 full time employees who pay on average less than $50,000 a year may be eligible for the Small Business Health Care Tax Credit if they contribute at least 50% toward employee premium costs.
* If you are a part time employee.......If you do not have job-based coverage, you may be able to buy health insurance in the marketplace exchange and possibly obtain a subsidy based on income to lower the costs. You may also qualify for low-cost coverage or free coverage through Medicaid.
* If you are on Medicare......... You need do nothing. Medicare isn't part of the Health Insurance Marketplace. If you have Medicare, you are already covered and the exchange won't affect your Medicare choices, nor will your benefits change.
*Young People............If a parents plan covers children, they can be added or kept on the health insurance plan until they turn 26 years of age.
* Pre-existing conditions.......No-one can be turned away or charged a higher premium for coverage if they have a pre-existing condition.
Hope this helps!
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