If you have questions about 2015 Health Insurance Plans, check out this overview of Pro’s & Con’s for each carrier and type of plan.
2015 OPEN ENROLLMENT (Nov 15th 2014 to April 17th 2015)
I wanted to give an overview of the FACTS about the Affordable Care Act (from the IRS website) of the NEW Health Insurance Law.
If you have any specific questions about your personal situation give me a call at 425-802-2783 or email me at gary@achieve-alpha.com. HERE is a more updated overview of 2015 plans!
Patient Protection and Affordable Care Act (3/23/2010)
Below is an overview of the NEW Healthcare Law in a straight forward non-partisan manner. Honestly there are positive and negative parts of any new law, it just depends on whether you are the one receiving more benefits or paying more money.
The Health Insurance Law provides coverage for approximately 30 Million more people. However about 26 Million people will be exempted from mandated coverage.
OBAMACARE HEALTH INSURANCE OVERVIEW:
- Healthy people, Younger people, and Rich (anyone with a decent job) WILL pay MORE
- Unhealthy people, Older people, and Poorer people WILL pay LESS
Overview of NEW Health Insurance Law Provisions:
- Price Ratio of Older to Younger is 5:1, will be 3:1 (older will pay less, younger will pay more)
- Children under the Age of 19 are Guaranteed Insurable (started in 2011)
- Adults will be Guaranteed Insurable (starting in 2014)
- No Pre-Existing Conditions & No Waiting Period (starting in 2014, currently it’s 9-months in WA State)
- No Lifetime Limit on Health Insurance Coverage (is $2,000,000 in WA State starting in 2014)
- Free Preventative & Wellness office visits on All plans (Started in 2011)
- Free contraception for women (started August 2012)
- Extension of Children on Parents Plans (increased from Age 24 to Age 26)
- Better Appeal Process for Denied Claims (starting in 2014)
Health Insurance companies MUST pay at least:
- Individual Plans: 80% on Health Benefits (20% overhead expenses)
- Group Plans: 85% on Health Benefits (15% overhead expenses)
Taxes that pay for the NEW Health Insurance Law
- Indoor Tanning 10% excise tax (2010)
- 40% excise tax on policies costing more than $10,200/person $27,500/family per year in 2018 (impacts most Group Plans)
- Health Savings Account withdrawals for Non-Health related costs (Increased from 10% to 20%)
- Tax Deductibility of Health Insurance Expenses (from 7.5% of income to 10.0%)
- Medical Device Manufactures will be taxed 2.3% on their Gross Sales (started in 2013)
- Drug Manufactures in the USA will be charged an Annual Fee based on Gross Sales
- Medicare Tax: From 1.9% to 2.45% on Income above $200K single, $250K married
- Capital Gains Tax: An additional 3.8% on Income above $200K single, $250K married
If you do NOT have Health Insurance the Tax Penalty with the IRS will be as follows:
2014 = $95 per person per year or 1% of your Income
2015 = $325 per person per yearor 2% of your Income
2016 = $695 per person per yearor 2.5% of your Income
2017= Tax Penalty will increase by the rate of inflation going forward, or 2.5% of your Income
Income Subsidies: (given as refundable tax credits)
Subsidies are aimed at people with incomes between 139% to 400% of the federal poverty level. The federal poverty level, which changes each year, is now $23,050 for a family of four, meaning a family earning up to $92,200 would be eligible for a subsidy, though it would be considerably smaller than those given to lower-income families.
How the Health Insurance Law impact business owners:
- Starting in 2014, employers with more than 50 workers must pay a fee to the federal government of $2,000 for each full-time employee for which the company does not provide health coverage, though the first 30 workers are excluded from the fee.
- Tax Credits up to 35% for smaller businesses to purchase coverage
In conclusion, what does the NEW Healthcare Law really mean? Currently in Washington State 92% of people are accepted for Individual Plans. The 8% that are denied Individual coverage can get coverage in the High Risk Pool, yet is extraordinarily expensive for bare bones coverage. If you have an Individual Health Insurance plan at this time, starting in 2014 everyone will be on the same type of plans. This will cause the 92% to pay more and the 8% will pay less.
In essence you get what you pay for. The NEW Health Insurance law provides significantly stronger coverage, yet will cost more for this increased protection.
If you have any questions I would be glad to help you go over current benefits, or shop for another plan or carrier that would provide YOU with better benefits for the cost.
How to get a Good Deal on Term Life Insurance
Prices have declined in the past 5 years (more competition and people are living longer). If you have not checked recently ask for a Term Life Insurance quote. Only 3 things are needed (Age, Male/Female & Tobacco/Non-Tobacco)…that was easy.
Below are our areas of expertise:
- Life Insurance (33 companies)
- Health Insurance (Every company in Washington State)
- Income Replacement Protection (8 companies)
- Tax Sheltered Accounts (Following IRS guidelines)
Gary Franke, MBA
Independent Broker
Achieve Alpha
12507 Bel-Red Rd
Bellevue, WA 98005
(425) 802-2783
gary@achieve-alpha.com
www.achieve-alpha.com