Individual Health Care Mandate Q&A

Beginning in 2014, the Affordable Care Act includes a mandate for most individuals to have health insurance or potentially pay a penalty for noncompliance. Individuals will be required to maintain minimum essential coverage for themselves and their dependents. Some individuals will be exempt from the mandate or the penalty, while others may be given financial assistance to help them pay for the cost of health insurance.

What type of coverage satisfies the individual mandate?

“Minimum essential coverage”

What is minimum essential coverage?

Minimum essential coverage is defined as:

  • Coverage under certain government-sponsored plans
  • Employer-sponsored plans, with respect to any employee
  • Plans in the individual market,
  • Grandfathered health plans; and
  • Any other health benefits coverage, such as a state health benefits risk pool, as recognized by the HHS Secretary.

Minimum essential coverage does not include health insurance coverage consisting of excepted benefits, such as dental-only coverage.

How does “Minimum Essential Coverage” differ from “Essential Health Benefits”?

Essential health benefits are required to be offered by certain plans starting in 2014 as a component of the essential health benefit package.  They are also the benefits that are subject to the annual and lifetime dollar limit requirements.

This is different than minimum essential coverage, which refers to the coverage needed to avoid the individual mandate penalty.  Coverage does not have to include essential benefits to be minimum essential coverage.

What is the penalty for noncompliance?

The penalty is the greater of:

  • For 2014, $95 per uninsured person or 1 percent of household income over the filing threshold,
  • For 2015, $325 per uninsured person or 2 percent of household income over the filing threshold, and
  • For 2016 and beyond, $695 per uninsured person or 2.5 percent of household income over the filing threshold.

There is a family cap on the flat dollar amount (but not the percentage of income test) of 300 percent, and the overall penalty is capped at the national average premium of a bronze level plan purchases through an exchange.  For individuals under 18 years old, the applicable per person penalty is one-half of the amounts listed above.

Beginning in 2017, the penalties will be increased by the cost-of-living adjustment.

Who will be exempt from the mandate?

Individuals who have a religious exemption, those not lawfully present in the United States, and incarcerated individuals are exempt from the minimum essential coverage requirement.

Are there other exceptions to when the penalty may apply?

Yes.  A penalty will not be assessed on individuals who:

  1. cannot afford coverage based on formulas contained in the law,
  2. have income below the federal income tax filing threshold,
  3. are members of Indian tribes,
  4. were uninsured for short coverage gaps of less than three months;
  5. have received a hardship waiver from the Secretary, or are residing outside of the United States, or are bona fide residents of any possession of the United States.

Health Insurance Exchanges

Health Insurance Exchanges:

http://www.youtube.com/watch?v=sCustemxpIE

Affordable Care Act—Whose train wreck is it anyway?

Whose train wreck is it anyway? Opinion By Kathryn Mayer May 1, 2013 •

By now, I’m sure you’ve heard about top Democratic senator Max Baucus predicting a “train wreck” coming for PPACA. In a budget hearing nearly two weeks ago, Baucus expressed his concern that the exchanges for consumers and small businesses wouldn’t open on time in every state. He also said the “administration’s public information campaign on the benefits of the Affordable Care Act deserves a failing grade.”

People worried about Obamacare’s implementation? Not a big surprise. But a key author of the health legislation screaming about it in a budget meeting? Not great for morale.

Recently, both HHS Secretary Kathleen Sebelius and President Obama admitted some flaws in the whole thing — Sebelius admitted the law would cause higher premiums for some, while Obama just this week said there will be “glitches and bumps” in the rollout of his health care law.

This isn’t news, but just how much higher premiums will be and just how bumpy this ride will end up — those are the questions.

One thing’s for sure: the law is losing steam. Public opinion is no longer on Obama’s side: The latest Kaiser Family Foundation poll found that a majority of Americans have a negative perception of the law. In the latest tracking poll, 40 percent said they have an unfavorable view of the law, compared with 35 percent who have a favorable view.

Oh, but here’s the worst (I mean scariest) part about all of it: Consumers still don’t get it. Like, they really, really don’t get it.

A staggering number of Americans — 42 percent — apparently didn’t realize that the Supreme Court held a huge case on the constitutionality of the law — and voted to keep it. Four in 10 Americans are unaware that the PPACA is still law and is being implemented. Among them, 12 percent believe the law has been repealed by Congress, 7 percent believe it’s been overturned by the Supreme Court and 23 percent say they don’t know enough to say what the status of the law is.

There’s not much else to say besides that’s not OK.

It makes me ask: whose train wreck is this, really? Is it the fault of the administration who passed and praised and pressed this law, but haven’t been able to successfully control its implementation? Is it Republicans who are too prideful for this to work, doing everything they can to prevent the success of the law?

Or is the trainwreck due to the ignorance of Americans, who apparently really need to pick up a newspaper or put on C-SPAN for a few minutes?

It’s a little bit of everyone. But without being embraced by each of these groups, the PPACA won’t just be off to an imperfect beginning; it will be a hot failure.

Health Insurance Exchange. What To Expect In 2014.

The Basics Of Health Insurance Exchanges.

As part of the Affordable Care Act (ACA or health care reform law), starting in 2014
all Americans must have a minimum amount of health insurance or be taxed by the
government. The law also requires each state to have a health insurance exchange
where people can buy health insurance coverage. People who don’t get health
insurance at work, or can’t afford it, may be able to get it through an exchange. The
exchanges do not replace buying health insurance privately. They are simply a new
place to shop and buy.

Exchange plans will be offered in a tiered format. The tiers are named
after metals: bronze, silver, gold, & platinum.  Each tier will have
several plans to choose from and will include essential health benefits.
Bronze plans will have the lowest monthly premium, but cost shares will
be more when health care services are provided. Platinum plans will
have the highest monthly premium, but cost shares will be less.

All plans must include “essential health benefits” as defined by the
health care reform law. Specifically, the plans must include items and
services from at least these 10 categories of care:*

1. Ambulatory patient services

2. Emergency services

3. Hospitalization

4. Maternity and newborn care

5. Mental health and substance use disorder services, including behavioral
health treatment

6. Prescription drugs

7. Rehabilitative and habilitative services and devices

8. Laboratory services

9. Preventive and wellness services and chronic disease management

10. Pediatric services, including oral and vision care

Subsidies & Credits For Individuals:

Those who don’t have access to affordable, minimum essential health
coverage can buy a health plan from the exchange and get a credit or
subsidy if they meet income requirements. Credits and subsidies help
with the cost of premiums and out-of-pocket health care expenses.

Income requirements:

133% to 400% of federal poverty level

For an individual that equals $15,282 to $45,960 per year (in 2013).

For a family of four that equals $31,322 to $94,200 per year (in 2013).

Individual Health Insurance

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