Obamacare: What it could mean for you

Posted on: October 28th, 2012 by

Eric L. Bach & Associates - Rockville, CPAThe healthcare reform bill, often referred to as “Obamacare”, doesn’t mean  a lot to workers who receive employer-sponsored coverage, but for those that buy individual insurance on the open market, it changed a lot.  Six months after enactment, health insurers could not place lifetime limits on the value of coverage or revoke existing coverage.  Starting in 2014, however, 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 the national high-risk pool and receive subsidized premiums.

Another big change that effected this population was the requirement to be insured or face a monetary penalty.  Early retirees and self employed individuals have to be able to purchase coverage through state based plans.  Tax credits are now 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 could have possibly been lowered.  Under the government reinsurance program, employers were 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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