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Best Common Question Regarding The Health Care Exchange
The date 1st October of the year 2013 officially marked the launch of ObamaCare as a state insurance policy. With the launch of the exchange of California, Covered California ObamaCare also opened up business avenues. Listed below are the answers to eight common queries asked employers in California regarding the state exchange.
When will a Health Care Exchange coverage signed by an employee in October take effect?
The coverage of the people who enrolled before 14th December 2013 came to effect on 1st January 2014. Generally, as per the rules of Covered California, the applications submitted around 15th of every month (post-December) are processed to be effective from the 1st of the next month.
Is there anything specific to be done for employees enrolled in the group health plan?
Nothing in particular. Employees already enjoying elected coverage for a certain plan year, and those using pre-tax dollars will continue to be covered in the existing group health plan.
What is the impact of the Health Care Exchange on COBRA?
COBRA is hardly being directly impacted by the Health Care Exchange. The employers obligated to be offering COBRA will have to continue with their obligation in a similar respect. However, participants of COBRA can explore the options in Exchange coverage to find a suitable alternative to COBRA.
How is the Market Place different from the Health Care Exchange?
The State Exchange, The Exchange, the Health Care Exchange, and the Market Place are not different from each other and are all the same. However, the Market Place allows you to compare the plans being offered by the participating carriers. The different aspect that you can compare includes benefits, price, and other unique features to help you make an informed decision.
How can employees in different states make a connection with the Exchange in the state where they are located?
The employees can be directed to healthcare.gov. This website will direct them to their State Exchange. When it comes to the people wanting to reach out to the Exchange concerning the ObamaCare Health Insurance California has ensured that the process remains as seamless as possible.
How can the employees who are not covered under the insurance find out their eligibility for a subsidy?
The employees willing to find out about their eligibility for a benefit like a subsidy can be directed either to www.healthcare.gov or www.coveredca.com. They can also be provided with the official phone number to reach out to Covered California which is 800-300-1506. The websites have been equipped with a cost calculator which helps people find out their eligibility for a subsidy. Hence, uninsured employees can easily find out whether or not they qualify for the benefit. A point to be noted is that fulfillment of the criteria of income requirement of the employee to avail the subsidy does not automatically make them eligible to avail the subsidy. Even with the required income, an employee may not qualify for the assistance in the event of the employer offering him or her coverage that meets with the requirements provided by the federal government.
How will an increase in payment affect someone qualified to avail a subsidy?
The tax credit is automatically adjusted to the change of income over the year. With the increase in income, the receiver of the subsidy will need to clear the difference when he or she is paying tax.
Will there be a penalty tax for people who choose to not opt for health insurance coverage?
Yes, since there is no change in the law when it comes to individual responsibility. As the law requires that most adults be covered under a health insurance policy for nine months in a year in the least, they will have to face a penalty otherwise.
- 1 Best Common Question Regarding The Health Care Exchange
- 1.1 When will a Health Care Exchange coverage signed by an employee in October take effect?
- 1.2 Is there anything specific to be done for employees enrolled in the group health plan?
- 1.3 What is the impact of the Health Care Exchange on COBRA?
- 1.4 How is the Market Place different from the Health Care Exchange?
- 1.5 How can employees in different states make a connection with the Exchange in the state where they are located?
- 1.6 How can the employees who are not covered under the insurance find out their eligibility for a subsidy?
- 1.7 How will an increase in payment affect someone qualified to avail a subsidy?
- 1.8 Will there be a penalty tax for people who choose to not opt for health insurance coverage?