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Health & Fitness

Health Insurance Marketplaces (Exchanges) begin Oct 1st

Regardless of what you may think of the Affordable Care Act (ACA) also known as Obamacare, the Census Bureau reported that over 17% of us had no health insurance in 2010. That figure is understandable given the number of small businesses, independent contractors and those who have to string together a number of part-time gigs who cannot afford health insurance premiums. Without health insurance, businesses face a less reliable workforce and individuals face financial ruin from even a minor accident or illness.

October 1st brings the start of an Insurance Marketplace, previously called an exchange, to Illinois. It will be a State/Federal partnership. It will offer individuals subsidized health insurance if their income is less than 400% of the federal poverty level. That’s not something to sneeze at (pun intended) with that level at $94,200 for a family of four in 2013. You can use the Marketplace to sign up for insurance between Oct 1st and the following March 31st. You can still buy your insurance directly at any time. However, you will then have to pay the unsubsidized premium that you may otherwise qualify for. The Congressional Budget Office estimates that 56% of those who participate in the Marketplace will receive some form of a subsidy. If you fail to purchase health insurance you could find yourself facing a higher tax bill on April 15th. The tax will start at the greater of $95 or 1% of your income and increase over the next several years to as much as $2,085 in 2016. For employers, if you have 50 or more FTE employees, there are some specific considerations and hefty financial consequences if you choose not to offer affordable health insurance to your employees. For employers with fewer than 50 employees, this may give you an opportunity to offer a benefit that you may not otherwise be able to afford. There are also some specific tax considerations for higher income families and those with investment income.

So, now is the time to start doing your homework. For employers with 50 or more FTE employees there are options and strategies available for you to ease your transition as the landscape changes. Be sure to begin this conversation with your benefits provider, attorney or CPA as soon as possible. For individuals and small businesses, you can now start to evaluate the wealth of information out there. Here are a couple websites that have been passed on to me that I think are quite helpful: www.healthcare.gov, www.healthreform.kff.org, www.robertslayton.blogspot.com, www.sba.gov/healtcare.    

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Please remember that everyone’s individual circumstances are different. Be sure to consult with your own professional to discuss these issues and your own specific situation. I’m merely trying to get the conversation started and am offering these materials for illustrative purposes only.





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