Why Was This Healthcare Law Created?
Obamacare was designed to provide basic and affordable coverage for all Americans. Before Obamacare, those with pre-existing conditions could be refused coverage or charged more for their plan.
Obamacare ensures that insurance companies allow those with pre-existing conditions to receive the same care as those without.
Now, minimum essential coverage plans exist that provide the services required by the ACA while simultaneously being affordable for employers and employees.
These plans help both parties stay healthy while also avoiding the fines and penalties that come along with not having health insurance (especially for Americans living in states with individual mandates).
After all, minimum essential coverage isn’t a one size fits all service. There are different options and levels to choose from to create a plan best suited for your specific needs.
Learn more by reading our article, “What is MEC and What Does It Cover?”
When Can I Enroll in Obamacare?
Open enrollment is the one time of the year when employees can sign up for health insurance or change their health insurance plans.
If you choose not to enroll during the open enrollment period, your options to purchase coverage become limited. Why? You cannot purchase ACA-compliant coverage unless a qualifying event occurs.
Qualifying events include:
- Loss of a job
- Move to a new coverage area
- Birth of a child
- Loss of existing coverage
- Family event (i.e. marriage, divorce, or death)
Depending on state requirements, employees can take advantage of open enrollment for the following year starting November 1 until approximately January 15th. Again, open enrollment varies on a state-by-state basis. States like California, for example, extend their open enrollment dates to January 31.
Read on to learn what happens if your employee misses open enrollment.
How does the Individual Mandate Affect Obamacare?
When Obamacare was first implemented, it contained a clause that required Americans to have health insurance. Those who didn’t have health insurance were required to pay a tax penalty. This tax penalty was repealed in 2017.
However, the individual mandate is still in effect for some states in the U.S.
Residents living in the following states have implemented individual mandates.
- California
- The District of Columbia
- Massachusetts
- New Jersey
- Vermont
- Rhode Island
This means that people living in the states mentioned above must have health insurance or face state-mandated tax penalties. Read on to learn more about ACA employer penalties.
At SBMA, our goal is to provide affordable ADA-compliant benefits to our clients. For more information about the plans that we offer or to enroll, get in touch with one of our brokers today.