Regardless of your political leanings, there’s a disturbing trend lately that doesn’t bode well for health care costs for all of us as individuals, or for employers working hard every day to make ends meet. Some call Speaker Boehner’s recent move to sue the Obama administration as a political stunt. Is it? Might he actually win? Could be a long while before we know but it’s important to look at the underlying costs of these decisions.
The Affordable Care Act (ACA) requires most individuals to obtain acceptable health insurance coverage for themselves and their family members or pay a penalty. This rule, which took effect in 2014, is often referred to as the individual mandate. The penalty amount that an individual will have to pay is capped at the annual national average bronze plan premium.
Keeping Private Exchanges Competitive
Rarely is there talk of the upside to the Affordable Care Act, but there really are many positive aspects to the law. Well, maybe not the law itself, but what the law has done to push forward the inevitable – defined contribution plans, and private health exchanges for the delivery of benefits to employees. With each new study, and employer survey, we see that more and more employers are embracing the defined contribution model and looking to private exchanges to deliver benefits.
Here’s what we’re learning:
The Internal Revenue Service has issued final regulations on the tax credit available to certain small employers that offer health insurance coverage to their employees under the Affordable Care Act.
Just when you thought it was safe to go back in the water – the IRS bites. Its recent ruling on dumping employees into the public health exchanges has many employers scratching their heads and asking “hmmm, isn’t the point of the Patient Protection and Affordable Care Act to get more people health care coverage?” Why then would the IRS impose hefty penalties on employers who provide a subsidy for employees to go out and seek health care in the public marketplaces?
The ACA and private exchanges could change the game when it comes to employer-sponsored health coverage. Sharon Goodman, principal at Slevin & Hart, and the International Foundation for Employee Benefit Plans provide eight areas employers need to look at when considering a private exchange.
The House Health Policy Committee last week began hearing testimony on legislation to add another mandated health insurance benefit to the books, a la Obamacare. The Michigan Chamber testified in opposition to this legislation because it will only add to the difficulty that small- and medium-sized businesses face in affording health insurance benefits.
On Tuesday, November 12, the House Health Policy Committee will begin taking testimony on legislation to add another mandated health insurance benefit to the books, a la Obamacare. The Michigan Chamber opposes this mandate because it will only add to the difficulty that small- and medium-sized businesses face in continuing to offer health insurance benefits.
The Michigan Chamber of Commerce has launched a Private Exchange for individuals and families to shop top-rated insurance companies. This site is functional and user-friendly and offers more than just medical options. Even without Federal subsidies, many are finding rates to be more competitive than the subsidized rates in the Federal Marketplace! Further, you will find greater flexibility in plan design alternatives through the Michigan Chamber Exchange. Shop, Compare and Enroll today, for coverage effective immediately.
The Michigan Chamber of Commerce today applauded the bipartisan passage of legislation to reform Michigan's Medicaid program and provide insurance access to the uninsured. House Bill 4714, introduced by Representative Matt Lori (R-Constantine), passed the Michigan Senate late yesterday, August 27th, by a vote of 20 to 18. The legislation will now go to the State House for a concurrence vote, which would send the bill to the Governor’s desk for his signature.