Showing posts with label health insurance exchanges. Show all posts
Showing posts with label health insurance exchanges. Show all posts

Saturday, May 4, 2013

Update on 2014 Affordable Care Act

Now that January, 2014 is only a few months away, it is becoming clearer how the Affordable Care Act will be implemented.  Like millions of other Americans, I recently received a letter from my insurance carrier, Kaiser Permanente, that provided more information about what to expect in the coming months.

These changes will have a major impact on many families and it is important that all of us stay informed so we are prepared to make the best decision for our family.  In addition, you may want to read my earlier blog post, "Help Soon for Boomers Without Health Insurance," to learn a little more information about how the the new health insurance exchanges will work.

Brief Overview of Heathcare Reform Changes

As of January 1, 2014, nearly everyone in the United States will have new health insurance opportunities as the result of the Affordable Care Act.  Here are some facts you will want to know:

Nearly everyone will be required to purchase health insurance or they will pay a penalty on their taxes at the end of the year.  At the end of the first year the penalties will be minimal, allowing people time to become accustomed to the change.  Gradually, the tax penalties will increase.

Every state will operate a Health Insurance Marketplace or Exchange.  Open enrollment begins in October, 2013.  You will be able to purchase insurance either in person, through the mail, by phone or on a website.

You cannot be turned down for health insurance, even if you are currently being treated for a serious illness such as cancer or diabetes.  You will no longer be required to have a medical review prior to approval.  People who have been unable to purchase an individual insurance policy in the past will now become eligible.

You may be able to get financial assistance to pay for your insurance and your out-of-pocket expenses.  The amount of assistance you get will depend on your income.  Kaiser gave the example that a single person earning less than $45,000 a year will be eligible for some financial aid.  This will be a tremendous help to a lot of single people and young families who are currently uninsured.  It could also help Baby Boomer couples when one of them is old enough for Medicare and their spouse is not.  If the older spouse is retired and their family income is low, they will be able to get financial assistance to help with the cost of health insurance for the younger spouse.  Since I have known several Baby Boomer couples who were faced with this situation, this could literally be a life-saver.

The Affordable Care Act requires four levels of coverage.  These have been called Bronze, Silver, Gold and Platinum.  Bronze plans will have the lowest premiums and the highest co-pays and out-of-pocket expenses.  At the other end of the spectrum, Platinum plans will have the highest premiums and the lowest co-pays and out-of-pocket expenses.  These four options will give everyone the choice that best meets their budget and healthcare needs.  Regardless of cost, all of the policies will have the same basic benefits such as a free annual physicals and certain diagnostic tests.

In addition to the plans mentioned above, there is also a catastrophic plan option.  This is only available for young adults under the age of 30, as well as families and older individuals who can show that they are not covered under an employer provided plan or an affordable individual plan.  The catastrophic plans will have even lower premiums and higher co-pays and out-of-pocket expenses than the Bronze plan mentioned above.  They will also provide the same basic benefits as the other plans, such as a free annual physical and preventative tests.  It's main purpose is to make it possible for everyone to have a comprehensive annual physical so that illnesses are caught early, when they can be treated most economically.  The catastrophic plan will also provide protection against crippling medical bills in the event of an emergency or serious illness.

If you currently have health insurance, over the next few months your carrier will be providing you with information about the changes you can expect to your policy.  Each company will have their own versions of the various plans for their customers to review. For those of you who do not currently have health insurance, you will find additional information in the coming months on this blog, as it becomes available.

Planning for Retirement

If you want more information to help you with your retirement plans, you may be interested in reading some of the articles listed in the index links shown below.  Click on the category that interests you and you will discover an introduction and a links to related articles on each topic:

Gifts, Travel and Family Relationships

Great Places for Boomers to Retire Overseas

Great Places to Retire in the United States

Health and Medical Topics for Baby Boomers

Money and Financial Planning for Baby Boomers


You are reading from the blog:  http://baby-boomer-retirement.blogspot.com

Photo of stethoscope courtesy of www.morguefile.com


Thursday, January 10, 2013

Help Soon for Boomers Without Health Insurance

Several Baby Boomer women I know are in the uncomfortable position of having lost their health insurance.  This happened because they were paying for their insurance through their husband's employer.  When the husband retired, sometimes sooner than they had planned because of an illness or job loss, the husband was able to go on Medicare if he was at least 65 years old.  Unfortunately, if the wife was under 65, they were not eligible for Medicare.  Some of these women have been able to obtain expensive personal policies, often through COBRA.  However, others are just hoping and praying they stay healthy until they are old enough to go on Medicare, too, especially if the high cost of COBRA or a pre-existing medical condition makes the cost of health insurance prohibitive.  I'm sure this same situation has happened to men who are dependent on their wife's employer for health insurance, too. 

New Health Insurance Exchanges

Fortunately, this should no longer be a problem after the end of this year. Beginning in 2014, insurance companies can no longer refuse to insure adults who have pre-existing conditions.  Starting this October, most states will have online insurance exchanges that will enable people of any age to begin shopping for affordable insurance policies, whether they have a pre-existing condition or not. The AARP Bulletin for January - February, 2013 recently reported on the status of the new health insurance exchanges, which were mandated by the Affordable Healthcare Act.

According to AARP, most states have already begun to decide how they will handle these exchanges.  Seventeen states and the District of Columbia have announced that they will operate their own exchanges; five states will partner with the federal government; eighteen states have said they will accept the default exchange that will be operated by the federal government; the remaining states have not made a decision.

How the Health Insurance Exchanges will Work

These exchanges will operate online.  They will be open to small businesses and individuals who cannot get affordable insurance through their employer.  The exchanges will also help people identify if they are eligible for any financial assistance through tax credit premium subsidies.  This will make it possible for even low income people to afford health insurance.

The goal of a health insurance exchange is to help anyone who does not have insurance, or who loses their insurance for any reason, to be able to replace their policy quickly, efficiently and at a reasonable price, even if they have a pre-existing condition such as a history of cancer, kidney disease or diabetes.  If the exchanges work as planned, they will give couples on the verge of retirement one less reason for worry.

There is another reason why we may experience some financial relief as a result of these exchanges.  Many Baby Boomers I know have been helping their adult children pay for health insurance.  Others are assisting their adult children by helping to pay off large medical bills their children incurred because they were uninsured.  The new insurance exchanges should bring us all some peace of mind.

If you are a Baby Boomer concerned about health issues, you may also be interested in reading these articles:

Sexually Transmitted Diseases After Age 50
Doctor Housecalls Provide Home Medical Care
How to Avoid Phony Online Pharmacies
Planning for Long Term Medical Care

You are reading from the blog: http://baby-boomer-retirement.blogspot.com

Photo of senior couple courtesy of www.morguefile.com