It’s still early in the summer, but we have some solid information this year on what to expect in terms of rate increases for 2016. All individual (and many group) plans are now based on a calendar year. In other words, new plans and premiums will be available during Open Enrollment — starting November 1 — for plans to begin in 2016. So, everyone needs to compare plans and make a decision for the new plan year.
In 2014, choosing not to have a compliant health insurance plan was (and is) a viable option for many people. The tax penalty — or to use the proper name — the “Individual Shared Responsibility Payment” for 2014 was not very high. Some people decided to take the risk and go without coverage, while some decided to get a low-cost non-compliant plan. Either way, the penalty wasn’t a huge deterrent.
The penalty is increasing significantly in 2015,
The IRS recently issued clarification on whether or not employers can contribute money (or reimburse payments) for employees who have individual (non-group) health insurance on a pre-tax basis. The answer is no, they will not allow it. See this article for details.
Many employers are sick and tired of the increasing costs of providing health insurance to their employees — this is well known. However, employers with fewer than 50 full-time equivalents (FTEs) are not required to offer health insurance and they can drop their group coverage —
The official Open Enrollment deadline to purchase personal health insurance was March 31, but there were a couple of extensions and exceptions made. Now, we’re well past the deadline and extensions, yet there are plenty of reasons why someone may need to purchase health insurance between now and the next Open Enrollment — which is November 15 to January 15. CMS calls these reasons “qualifying events”. A qualifying event triggers a “Special Enrollment Period”, so applications can be submitted either on or off the Marketplace.
I normally don’t post twice in one day — partly because I’m very busy helping clients — however, today is an exception. After writing about the soon-coming public awareness campaign about Obamacare this morning, I read an article about WebMD offering advice regarding the new Health Insurance Marketplace. Now, this isn’t big news — I read about this last week However, I was surprised to learn that they didn’t mention that agents were also a valuable resource!
A huge public awareness campaign will soon be launched in Georgia and all over the nation. Each state has received substantial funds so they can get the word out. The message is geared towards people who will benefit from enrolling in the exchange (aka: marketplace). There is still a lot of confusion surrounding the new health insurance marketplace. Most people still don’t know how they will be impacted. Hopefully, the public awareness campaign will help bring some clarity.
As a result of the Affordable Care Act (ACA), rates for individual/family health insurance will drop by 50% or so in New York — NOT Georgia. This news was just announced recently and it’s really no surprise to those who understand how some states currently regulate health insurance. NY and a few other states currently cover everybody without regard to health status. Consequently, their rates are much, much higher than other states like Georgia. You can read more about this here.
On January 1, 2014, the most far-reaching provisions of the Affordable Care Act go into effect. Insurers will be required to accept all applications. This means that no longer can an individual be declined or “rated-up” for pre-existing health conditions in the personal health plans market.
Open enrollment for the exchanges (new health insurance marketplace) begins on October 1, 2013. However, we are still aiming at a moving target. Nobody knows exactly what the plans will look like.
According to a recent announcement by the Georgia Insurance Commissioner’s office, all health insurance carriers in Georgia are required to offer “child-only” policies again — starting January 1, 2013.
This is very good news for a lot of families who have been forced to keep children on expensive group plans or find alternate coverage for their children. Sometimes parents can’t qualify for a personal plan or find it too costly, yet they want their children to be covered.
There is not a single “right way” to apply for health or life insurance. Although their are some general guidelines followed by most carriers, each carrier has it’s own set of unique underwriting guidelines. This is why it is very important to apply for coverage with the assistance of a knowledgeable agent. People who apply directly with a carrier or through an inexperienced agent are much more likely to get declined or receive an unfavorable underwriting decision.
As an example,
