Yes, national health care is now the law of the land, but how is it going to affect those of us here in Auburn? Are we exempt or will we be hit hard by the changes?
Will insurance premiums increase here? Many of the local insurance companies don’t have an answer to that question, yet.
Many small business owners will be big winners under the nation’s historic health care overhaul. The bill aims to make health insurance more affordable for small businesses by creating more competition and use of the state-based insurance exchanges. However, no one knows how the exchanges will be set up and who will manage them. The exchanges are not due until 2014.
Some of the highlights to the health care bill include:
• From 2010-2013, businesses with fewer than 25 employees with an annual wage average of $50,000 or less are eligible for a tax credit of up to 35 percent of the employee’s health insurance premium. Beginning in 2014, eligible employers can get a tax credit of up to 50 percent for two years for insurance purchased through the health insurance exchange.
• In 2010, insurance companies can no longer exclude from coverage preexisting health conditions. Here in our state, for individual coverage, a nine-month preexisting waiting period may apply and for a group, it is six months.
• In 2010, the insurance company must pay for preventive care and certain immunizations. Co-pays may not be used.
• Insurance companies must accept every employer and individual applying for coverage and in most cases here in Washington, we can avoid the State Basic Health Plan with this provision.
• In 2010, insurers are banned from placing a lifetime limit on your policy. If your current plan has a two million dollar lifetime maximum, that will change to an unlimited lifetime benefit.
• In 2010, dependent children coverage is extended to age 26, regardless if they are a college student or not.
• In 2010, insurance companies cannot drop your coverage because of a change in health. We already have this in Washington.
• In 2014, all individuals will be required to obtain insurance, except those who obtain hardship waivers.
• In 2014, employers with 50 or more employees who do not offer health insurance will pay $2,000 per full-time worker if any of their employees purchases the government-subsidized coverage through the exchange.
• In 2014-2018, employers with more than 50 workers who offer unaffordable coverage or coverage that does not cover at least 60 percent of allowable costs will pay $3,000 for any employee who receives a tax credit from the exchange.
• In 2018, a 40-percent excise tax will be imposed on group insurance premiums that are above $10,200 for single and $27,500 for family coverage.
– Ron Copple owns Copple Insurance Group. Reach him at 253-735-2778.
