Healthcare Reform School - Lesson #7 - Preparing for the Affordable Care Act

Welcome back to class.  I have been delayed in getting this lesson out because I was sick and had to use my health insurance a bit. I am feeling well enough to start teaching again!  Thank goodness.

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So just what should people do to prepare for the Affordable Care Act?   The first step is education, which you are already doing, then taking steps to put yourself in a good position.  Another excellent source for learning as much as you would ever want to know about health insurance is the Kaiser Foundation Website.  This is a non-partisan organization that has an excellent website and even has a rate calculator that will estimate your premiums in 2014.  I suggest using their rate calculator to determine how much your premiums will be in 2014 and if you will be eligible for a tax credit.  If that rate is higher than you are paying now, which it most likely will be depending on your age, then you should talk to a health insurance agent and ask what you can do to keep you rate stable  through 2014.  As an agent/broker myself, I have multiple companies that are offering stability in their policies through the entire year of 2014.  The only catch is that you have to have that insurance in place before the law goes into effect.  This advice is relevant for everyone who currently buys their own health insurance on the private market. 

But what if you are a small business owner or work for a company that offers a group plan.  For small business owners with small groups, there are other options that I will go over in my next blog, which will be very soon.  For people on a group plan, it depends on what your employer will do in 2014.  That plan may be very different for large companies versus small companies with less than 50 employees. I suggest asking  what they foresee for benefits in 2014.  If they are considering dropping their group insurance, then you should start now to prepare, remember rates are lower now then they will ever be again.  If you wait for your employer to drop your group plan and then go onto the health exchange, you could be stuck paying more than you need to.  It may make sense to find new coverage on the private market now, and then drop out of your small group once you have new insurance in place.

So it is important to know how you will be affected and then have a plan to put yourself in the best position.  Education is the first step.  Taking action is the next step and the most important step.  Feel free to contact me for advice, or your own health insurance agent for advice.  Now is the time for you to have an agent.  Their services are free to everyone, but good agents should know how to prepare you for the future based on the training they receive.

Thanks for attending class and see you soon.

To educate yourself more, please go back and review my first six lessons:
 Lesson #1 - Introduction
Lesson #2 - Basic Reason for creating the Patient Protection and Affordable Care Act
Lesson #3 - Public exchanges for Purchasing Insurance
Lesson #4 - Essential Health Benefits that will be added to all Health Insurance policies in 2014
Lesson #5 - Tax Credits to Help Pay for Health Insurance
Lesson #6 - Enforcement and Penalties in the Affordable Care Act