Preparing for Final 2014 Health Care Reforms

The Affordable Care Act (ACA) of 2010 has been slowly rolling out reforms to state and federal health care laws. The last set of provisions will take effect in 2014 and most people will be required to have health insurance. Are you ready?

Californians – individuals, families and business owners – need to be prepared by the end of this year. Now is the time to check your health insurance policies or speak with a local agent about bringing your business into compliance with coming regulations.

Here is an overview of the final reforms impacting Californians:

Impact of 2014 Health Care Reforms

Individuals

  • Individuals are required to obtain health insurance through their parents (until the age of 26), through an employer, a private program, or a publicly subsidised program such as Medi-Cal.
  • Insurers are prohibited from denying coverage for pre-existing medical conditions
  • Medi-Cal, California’s subsidised public program for low-income individuals, families, seniors and disabled, will be expanding care benefits and coverage eligibility to…
    • Individuals earning $14,856 or less
    • Family households earning a joint income of $30,657 or less
  • Federally Subsidised Health Insurance Exchanges will be available to individuals and families who do not qualify for Medi-Cal but earn less than $44,680 or $92,200 for families.
    And if you are already insurance through your employer, you may shop for more affordable options through these market exchanges.
  • Penalties will be assessed on all other individuals who do not show proof of insurance coverage through an employer or private insurance – up to 2.5% of their income

Businesses

  • …with less than 25 employees will not be required to provide health insurance, but they will receive tax credits of 50% if they do provide health insurance for employees in 2014. – And a healthy workforce is usually a productive asset for a successful business!
  • …with less than 50 employees will not be required to provide health insurance, but they can provide affordable through the Small Business Health Options Program (SHOP). This health care exchange will subsidise the costs for small businesses so they can encourage a healthy workplace and compete for talent with attractive and affordable benefit packages.
  • …with 50 or more full-time employees must offer 95% of their full-time employees affordable health insurance options.
  • Companies with 50 or more full-time employees will be required to take part in an employer shared responsibility payment system – Pay or Play – if at least one full-time employee (anyone working an average of 30+ hours per week) receives a premium tax credit for purchasing private coverage on one of the affordable insurance exchanges.

Time to Shop and Enroll

If you are a business owner, you need to be thinking ahead. If you are uninsured, it is time to start looking into your options for enrollment. And if you already have coverage, but need to look for something more affordable, it is time to start gathering your financial statements and asking your agent about the coming exchange process.

Atlas Plus Insurance is dedicated to helping Californians wade through the regulations and procedures of the new health insurance system. Our team of professional agents are staying up to date on the latest deadlines, coverage options, reporting procedures and tax benefits so you can pick an affordable plan by 2014.