Well it's finally upon us.
We've heard about it, ignored it, waited for it, and got warped up in the rumors.
Very soon the law takes affect.
So what can we expect.
Well first things first, it's not free healthcare as so many have thought.
Yes there will be subsidies for some, but those will be in the way of tax breaks.
Not quite what many had in mind I'm sure.
After all what good will this do you the other 11 months out of the year? And yes, there will be some exceptions, but they will be few in comparison.
One thing that is pretty certain is that rates will go up.
Some are predicting 40% or more.
But with the ACA "Affordable Care Act" mandating that insurance companies now take all comers "including pre-existing conditions" and adding 10 new services to be offered on every policy, the insurance companies aren't to blame.
Just last month I received a call on a Friday night around 10:00.
The lady was frantic and wanted to know if I could get her husband covered by Monday morning.
"The answer was obviously no" Seems that after some blood work there was question to him having prostate cancer.
I informed her that there was a 180 waiting period and it still took a couple weeks before someone could get approved.
I called her back on Tuesday to check on her husband it turned out to be false alarm.
So I asked if she would like to get something set up and her reply was "No, we don't need it now" This ladys and gentlemen is a main concern of health insurance companies and a valid reason why rates are going up.
I hear this several times a week.
Be it with life or health insurance, people wait until the last minute before obtain it, and then complain about the rates.
Fact is, there will be a waiting period on pre-existing conditions.
Many of the companies are looking at around 90 days.
With the competition about to explode, I doubt there will be any significant difference from one company to the next.
The basic structure imposed by the ACA will consist of 4 levels.
Bronze which will be a 60/40 plan.
Silver a 70/30, Gold a 80/20 and Platinum a 90/10.
The first number being the hospitals responsibility and the second number being yours The Silver plan is the one the ACA is pushing the hardest.
It's the one that will come with the tax breaks and off the incentives.
As many of us have heard, companies with 50 or more full time employees will be responsible to provide health insurance or face fines.
But it's not that cut and dry.
The employee's portion of the insurance offered can not exceed 9.
5% of the employees annual income.
So if what the employer provides doesn't meet these guide lines, then they will still be subject to penalties and fines.
What many fail to realize is that the average cost for companies to provide insurance for their employees has been $15,000 a year per person.
This equates to over $7.
00 an hr above their current wage.
And from here it's only going to go up.
As many of us have heard, companies are cutting back on full time employees.
One option has been to have the same employee work for two different franchises such as in restaurants and fast food establishments.
This would help to retain the employee, keep their hours up, and avoid the ACA rules.
Something else we're seeing more of in the industry is people obtaining their own insurance.
All to often someone becomes to ill to work or has an accident and are let go.
So now when they need the insurance the most, it's no longer available.
Yes there is always COBRA, but with now being out of work and their rates being triple those of standard insurance, can that really be considered as an option? I work with a lot of business owners to help find the best possible solution for their needs and the needs of their employees.
By working with both health and life, I'm able to draw strategies from both and formulate a working solution be it life, health, retirement or financial planning.
We've heard about it, ignored it, waited for it, and got warped up in the rumors.
Very soon the law takes affect.
So what can we expect.
Well first things first, it's not free healthcare as so many have thought.
Yes there will be subsidies for some, but those will be in the way of tax breaks.
Not quite what many had in mind I'm sure.
After all what good will this do you the other 11 months out of the year? And yes, there will be some exceptions, but they will be few in comparison.
One thing that is pretty certain is that rates will go up.
Some are predicting 40% or more.
But with the ACA "Affordable Care Act" mandating that insurance companies now take all comers "including pre-existing conditions" and adding 10 new services to be offered on every policy, the insurance companies aren't to blame.
Just last month I received a call on a Friday night around 10:00.
The lady was frantic and wanted to know if I could get her husband covered by Monday morning.
"The answer was obviously no" Seems that after some blood work there was question to him having prostate cancer.
I informed her that there was a 180 waiting period and it still took a couple weeks before someone could get approved.
I called her back on Tuesday to check on her husband it turned out to be false alarm.
So I asked if she would like to get something set up and her reply was "No, we don't need it now" This ladys and gentlemen is a main concern of health insurance companies and a valid reason why rates are going up.
I hear this several times a week.
Be it with life or health insurance, people wait until the last minute before obtain it, and then complain about the rates.
Fact is, there will be a waiting period on pre-existing conditions.
Many of the companies are looking at around 90 days.
With the competition about to explode, I doubt there will be any significant difference from one company to the next.
The basic structure imposed by the ACA will consist of 4 levels.
Bronze which will be a 60/40 plan.
Silver a 70/30, Gold a 80/20 and Platinum a 90/10.
The first number being the hospitals responsibility and the second number being yours The Silver plan is the one the ACA is pushing the hardest.
It's the one that will come with the tax breaks and off the incentives.
As many of us have heard, companies with 50 or more full time employees will be responsible to provide health insurance or face fines.
But it's not that cut and dry.
The employee's portion of the insurance offered can not exceed 9.
5% of the employees annual income.
So if what the employer provides doesn't meet these guide lines, then they will still be subject to penalties and fines.
What many fail to realize is that the average cost for companies to provide insurance for their employees has been $15,000 a year per person.
This equates to over $7.
00 an hr above their current wage.
And from here it's only going to go up.
As many of us have heard, companies are cutting back on full time employees.
One option has been to have the same employee work for two different franchises such as in restaurants and fast food establishments.
This would help to retain the employee, keep their hours up, and avoid the ACA rules.
Something else we're seeing more of in the industry is people obtaining their own insurance.
All to often someone becomes to ill to work or has an accident and are let go.
So now when they need the insurance the most, it's no longer available.
Yes there is always COBRA, but with now being out of work and their rates being triple those of standard insurance, can that really be considered as an option? I work with a lot of business owners to help find the best possible solution for their needs and the needs of their employees.
By working with both health and life, I'm able to draw strategies from both and formulate a working solution be it life, health, retirement or financial planning.
Source...