The Affordable Care Act, or ObamaCare, will take effect on January 1st, 2014. However, access to the “Marketplace” is supposed to be ready October 1st of this year. The Marketplace is where you buy health insurance through the Government if you don’t have employer coverage or a plan on your own. These are the most important things you need to know about Obamacare:
1. The Marketplace will have very few plans to choose from. Right now, they have 4 plans (Platinum, Gold, Silver & Bronze). Rates are not published for these plans yet, but should be by next week. The crazy thing is, our Government asked the Insurance Companies to bid on these plans before knowing what coverage was to be included! Which way do you expect the Insurance companies had to error on? Expect the rates to be VERY high.
2. You are not guaranteed to get free insurance from the Government. They will subsidize costs based on your personal circumstances. It’s not black and white either. You could have any percentage of your costs subsidized dependent upon qualification, but you will be responsible for the rest with your own AFTER TAX DOLLARS. You can apply for Obamacare here.
3. The Government is subsidizing your costs by giving the Insurance companies a tax credit. (They aren’t paying out of pocket)
4. Insurance costs are projected to increase by 200% in the next 2 years. Usually, they are way off on these predictions with error on the optimistic side for the sake of PR. Start planning a budget right now based on the increase happening today. That should protect you from “payment shock” down the road.
Other topics discussed on today’s show:
– The proper way to prepare your business for sale
– The #1 way to advocate for Seniors
– How to avoid some of the biggest financial mistakes we have ever seen
– Should APPLE be paying more taxes?
– How to incorporate your business the smart way
Listen to today’s show here: