Healthcare Reform: What It Means to Retirees and Self-Employed

Posted on: April 1st, 2010 by

Eric L. Bach & Associates - Rockville, CPAThe new healthcare reform bill doesn’t mean  a lot to workers who receive employer-sponsored coverage, but for those that buy individual insurance on the open market, it changes a lot.  Six months after enactment, health insurers cannot place lifetime limits on the value of coverage or revoke existing coverage.  Starting in 2014, insurers must accept all applicants, including anyone with preexisting conditions.  Until then, individuals with preexisting conditions who have been uninsured for more than 6 months will be eligible to enroll in a new national high-risk pool and receive subsidized premiums.

Another big change effecting this population is the requirement to be insured or face a monetary penalty.  Early retirees and self employed individuals are going to be able to purchase coverage through state based plans.  Tax credits will be made available to individuals and families with income between 133-400% of the poverty line.  You should speak to your local CPA about these tax credits.

Lastly, if you are 55 years of age and are enrolled in an employer sponsored retiree health plan, your costs may soon be lowered.  Under the government reinsurance program, employers will be reimbursed for 80% of retiree claims between $15,000-$90,000.  The program will end on January 1, 2014.  Speak to your insurance liaison to help pick the most beneficial plan for you.



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