Many have called us to ask how health care reform would affect them. Here are some of the most frequently asked questions.
Is it true that everyone has to buy health insurance?
Not until 2014. All Americans will be required to obtain coverage or face an annual penalty starting in 2014. The initial penalty will be $95. By 2016, the penalty will be the greater of two alternatives: a flat fee of $695 or 2.5% of income. There is an exemption for low-income people.
Do carriers have to accept everyone now?
The big changes in the law - the ones that could affect tens of millions of people - don't kick in until 2014. Those include insurance marketplaces called "exchanges"; rules requiring carriers to accept all applicants; and an expansion of state Medicaid programs.
I own a small business. Am I now required to provide health insurance for my employees?
Businesses that do not provide coverage will be assessed a $2,000 per-employee fee starting in 2014. The fee will be assessed on the company's entire workforce, minus an allowance. Companies with 50 or fewer workers are exempt from the requirement. A small-business tax credit will be available to help provide coverage for workers.
Does this mean we have a government-run plan?
No. Starting in 2014, people purchasing coverage through the exchanges will have the option of signing up for national plans overseen by the same federal office that manages the health plans available to members of Congress.
I am sure there is more to come as we get closer to the starting date in 2014. Hope you all have a nice safe weekend.
