During the upcoming year expect many news releases on the health insurance exchange being set up for both individual and business consumers. One recent development is the name of the state health exchange will be called Covered California.
As the year goes by our health insurance agency will be updating our clients and visitors about different aspects of the new health insurance exchange including subsidy issues for both individuals and families along with tax credits for businesses. For instance, the tax subsidy is credited toward the insurance you would purchase and subtracted from the total cost of the insurance policy.
Thus a person would not be reimbursed at the end of the year with a tax credit or have to upfront money before subidies kick in. The total amount of health insurance is figured monthly including subsidies based on the age and income level of the individual or family. One aspect to keep in mind is that the subsidy amount is based on the 2012 modified gross income of the individual or family starting for the 2014 calendar year for health insurance.
Our agency will continue to advise on tax subsidies and the corresponding links to calculate the final monthly health insurance premiums. One of our previous blogs discusses penalties for not purchasing health insurance. Our purpose is to advise clients and consumers of all possible options including not purchasing insurance.
Subsidies will actually be higher for older consumers with limited incomes since there is a 3:1 ratio between the highest and lowest possible rates for all purchasers of insurance. Our portal will provide a direct link to Covered California which will allow anyone to obtain a health insurance quote with the final monthly premium for any of the plans offered.
So not only do we offer a direct link to review and apply for coverage but our office will consult and present options for you to consider either in or outside the exchange. The learning curve for the entire system will be month by month for everyone in the industry but our staff will be thoroughly educated so we can give so the most updated and accurate information.
Here is a recent press release from the new state health exchange http://www.warnerpacific.com/shared/staticcontent/marketing/Press_Release_Covered_Cal_2-15-2013.pdf
