The Patient Protection and Affordable Care Act was signed into law on March 23, 2010. Enclosed is a brief overview of how the law will affect both individuals and businesses.
One of the immediate changes is that dependents can stay on their parents’ insurance until they turn 26. Insurance companies must continue to offer Essential Health Benefits such as wellness and preventative care services at 100%.
The majority of the changes start January 1, 2014. Individuals are mandated to buy insurance, and if they do not, individuals will be responsible to pay a minimum fine of $95 or 1% of their Household income. By 2016, the minimum fine is $695 or 2.5% of their household income.
Employers with 50 or more full-time employees are required to provide affordable health insurance to their employees. If an employer with more than 50 employees does not provide affordable health insurance to its employees, the employer could be fined up to $3,000 per employee.
All carriers cannot exclude pre-existing conditions on anyone. All states must have an exchange or marketplace set up. New Jersey has decided to use the federal government’s exchange. The exchange is a place where individuals and small businesses can shop for insurance.
Individuals who do not qualify for affordable coverage through their employer may qualify for a premium subsidy through the federal government. The subsidy will be for individuals and families who have income between 100 – 400% of the federal poverty level.
Small businesses may also choose to buy insurance for employees through the Marketplace. A small business may qualify for a tax credit up to 50% of the cost of the premium.
This is just a brief summary of how the new law will affect most individuals. As an independent broker, I have been helping individuals and businesses with health insurance for more than 10 years. I would be happy to schedule a time to discuss the new law in detail and assist in helping individuals and businesses find the best coverage for their needs. Please call (609) 513-4634 or email mcarpenter@srhafetz.com for more information.
-Submitted by Marc Carpenter of Hafetz & Associates
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