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Dear :
Hope everyone enjoyed the Holiday!
If you want to read something incredibly interesting pick up Meredith Whitney's Fate of the States. She was one of the first to predict the demise of the sub-prime mortgage business.
As we've detailed in our newsletters, the new state exchanges are projecting very high insurance rates similar to Massachusetts. Remember when Universal health insurance, "RomneyCare", was passed and reports outlined an exchange to be set up (today call the Connector), with affordable rates to help people buy health insurance. None of this has happened.
Under Obamacare, companies with at least 50 full-time employees are required to provide qualifying health benefits to workers or face financial penalties called "shared responsibility payments starting in 2014 up to 3,000 per employee. On July 3rd, it was decided to delay this one year until 2015, Forbes. This could be the beginning of the end of the Affodable Care Act.
We are always available - call or send an email to Bill or Vanessa today.
Sincerely,
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Commonwealth seeks relief from ObamaCare
Story in the Boston Globe. Currently groups with less than 50 employees are have rates determined by certain factors including census/average age/family size, industry type and zip code. Carriers give discounts for certain SIC codes based on the claims history with these SIC codes.
Obamacare only allows four factors when determining rates:
- Self-only or family enrollment
- Geographic area
- Age (except the rate cannot vary by more than 3 to 1 for adults, 44 states exceed that threshold)
- Tobacco use
What does this mean?
- If you currently have a favorable SIC code you will see an automatic increase at renewal. It is estimated that 60% of groups would be adversely effected.
- If your family makeup is more "two person", they will now be classified as families.
- No more wellness initiatives or cooperative discounts.
Example: Assume you have an SIC code with a 7% discount. If this was taken away, you would not only get your regular increase but lose the 7% SIC discount!!
Stay tuned.
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Insurance Partnership
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The Commonwealth of Massachusetts still has  the Insurance Partnership which will help employees pay for existing health insurance, if they meet certain income requirements.
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Employee Income Ceilings *
| | Family size | Gross Family Income
Cannot Exceed | | 1 | $34,476 | | 2 | $46,536 | | 3 | $58,596 | | 4 | $70,656 | | 5 | $82,716 |
For each additional dependent add $12,060.
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Just like any state program there is alot of paperwork, so be warned and caveats; for example, if you are an individual who has had health insurance more then 6 months, you can not qualify. Our advice is to check out the website and make some calls.
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