As provisions of the new Affordable Care Act kick in this month, it’s a good time for both individuals and businesses to make themselves familiar with what the act requires.
The point of the healthcare act is to extend coverage to those who currently are without coverage. It offers many different options for healthcare coverage, but it’s important to know the dates for various deadlines.
The act also is important for businesses, some of which will have to begin offering coverage to employees by 2015.
According to an article from CNBC, ACA – known as “Obamacare” – aims at providing coverage to all individuals through employers, Medicare, Medicaid or through individual coverage purchased through government-run health insurance exchanges.
The start of the healthcare program has been the target of Congressional Republicans, who want to remove some provisions or at least delay the law’s implementation.
“The Affordable Care Act is moving forward. That funding is already in place. You can’t shut it down,” President Barack Obama said during a press conference at the White House this week.
The first important date for the healthcare law has already passed. On Oct. 1, health insurance exchanges went live on the Internet. In addition to providing all the options available from state exchanges, the site – www.healthcare.gov – also allows users to find out whether their income level qualifies them for government aid.
The day also marked the beginning of a six-month enrollment period which allows people to choose the insurance plan they want for 2014.
Other deadlines include:
- Dec. 15. If you want your insurance coverage through the healthcare exchanges to start by Jan. 1, 2014, this is the date by which you must have enrolled and paid your first premium.
- Jan. 1, 2014. Insurance coverage begins for those who have enrolled. Those who do not have insurance could face a $95 penalty or 1% of their income, whichever is more.
- March 31, 2014. This is the last day of the six-month open enrollment period for the healthcare exchanges. People can still enroll if they have a “qualifying” event, such as divorce, losing a job or having a child.
- Oct. 15, 2014. Starting in 2014, this date will be the start of the open enrollment on the health exchanges every year.
- Dec. 7, 2014. Starting in 2014, this will be the closing date for opening enrollment every year.
- Jan. 1, 2015. By this date, if you do not have insurance coverage you will pay a penalty of $325 or 2% of your income, whichever is higher.
- Jan. 1, 2016. By this date, the penalty for not having insurance will rise to $695 or 2.5% of income, whichever is more.
For businesses, the important date is Jan. 1, 2015. On that date, all businesses with 50 or more full-time employees will have to affordable, comprehensive coverage of face a $2,000 fine.
