How will the Health Insurance Exchange work in California ?
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Starting in October 2013,agents will be able to provide quotes for the premiums of the Health Insurance Exchange for 2014. The only questions concerning your health will be whether you are a smoker or non-smoker. No other health questions will be required. The new central question will be, what you adjusted modified adjusted gross income was for 2012. This figure will determine if you qualify for a Federal subsidy in the Health Insurance Exchange. A family of four with a modified adjusted gross income up to $ 92,000 may still qualify for a federal subsidy. Please keep this in mind while preparing your 2012 tax return.
The principle of the Health Insurance Exchange is based on a tiered program of insurance plans. There will be four tiers of insurance: Platinum, Gold, Silver, and Bronze Plans. For further detail on the Health Insurance Exchange click here. |
Will you qualify for a federal subsidy to buy health insurance in 2014 ?
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Depending on your income, age, the size of your household,and where you live, many Americans might qualify for subsidies in the form from of a tax credit or direct government payments towards the health insurance premiums. Not only will low- income families be eligible but moderate-income families earning up to 400 percent of the Federal Poverty Level will receive subsidies. (That is $92,000 for a family of four.)  The subsidy is based on the modified adjusted gross Income based on your 1040 tax return for 2012 ( Line item 37 & 8b of your 1040 form ) , will be adjusted annually according to your tax return.
The Kaiser Family Foundation has created the Health Reform Subsidy calculator, which will show whether you will qualify for subsidies.
Read more about the federal subsidies by clicking here
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and March 2013, up to 22% have caused many of my clients to reevaluate their health and life insurance needs. Surprisingly. the California insurance commissioner did not interfere with these rate increases. This has let some people to speculate that these increases reflect the rates that can be expected once the 
finance the federal subsidies for the Health Insurance Exchange.
