On Tuesday, October 1, Colorado opened its health insurance marketplace exchange called "Connect for Health Colorado" (http://connectforhealthco.com/). Colorado’s exchange was created to offer coverage to individuals and small businesses in answer to the provisions set forth in the Patient Protection and Affordable Care Act (PPACA). In keeping with our commitment to ensure our clients are informed with the latest health care information please find Connect for Health Exchange FAQ on our web at discoveryoutsourcing.com Here are a few questions and answers from the FAQ.
Q: Is Discovery certified to work through Connect for Health Colorado?
A: Yes, we have licensed insurance agents on staff who are also certified to work through Connect for Health Colorado. If any of our clients are interested in exploring the exchange Discovery can certainly be of assistance.
Q: Can my low wage employees go to the exchange and find health care options with subsidies? Can they purchase insurance through the individual exchange?
A: Your employees cannot purchase individual plans with subsidies through exchange if the employer offers minimum essential coverage. All of Discovery’s plans do meet the minimum essential coverage...
Q: Is Discovery certified to work through Connect for Health Colorado?
A: Yes, we have licensed insurance agents on staff who are also certified to work through Connect for Health Colorado. If any of our clients are interested in exploring the exchange Discovery can certainly be of assistance.
Q: Can my low wage employees go to the exchange and find health care options with subsidies? Can they purchase insurance through the individual exchange?
A: Your employees cannot purchase individual plans with subsidies through exchange if the employer offers minimum essential coverage. All of Discovery’s plans do meet the minimum essential coverage...
...If the employer does not offer minimum essential coverage or the employees pays more than 9.5% of their W2 income for employee-only plans, the employees can go to the exchange to purchase plans. However, please keep in mind if the employees do go to the exchange, then the employer cannot make contributions to the health care plans and the employee premiums are not tax deductible. The net effect is that the plans on the exchange are usually more expensive than the ones their employer is offering. Employees should be encouraged to compare out of pocket expenses and network sizes when reviewing exchange plans versus employer sponsored plans.
Q: Which employers are subject to the requirement to provide insurance to employees beginning in 2015?
A: In 2015, employers with 50 or more full-time employees to provide coverage to employees and dependents. These businesses could be penalized by the IRS in 2016 if at least one full-time worker receives federal financial assistance (tax
credits) through Connect for Health Colorado, based on income. Penalties include a fine of $2,000 annually for each employee beyond the first 30 employees, as well as a penalty of $3,000 if the employer offers insurance but it is not affordable or does not does not provide the federally approved minimum coverage for each employee who receives a tax credit.
Q: Are there multiple carrier choices and plan options?
A: Yes, there are multiple carriers and 4 plan tiers in Colorado: bronze, silver, gold and platinum. Each coverage level shows the expected portion of total health care costs a health insurance carrier will pay.
Q: Will my employees have to pay a penalty to the IRS if I don’t offer group insurance coverage?
A: Starting in 2014, most people will be required to have health insurance or pay a penalty if they don't. Coverage may include employer-provided insurance, coverage someone buys on their own, Medicaid, Medicare or VA benefits.
Q: Can you explain what the "SHOP" program is?
A: The Small Business Health Insurance Options Program, or "SHOP" is a way for small businesses to shop for coverage through the new marketplace. The program provides a maximum tax credit for companies meeting the following
criteria:
Q: Can Discovery Outsourcing help me determine if my company is eligible?
A: Yes, we can help you determine if you are eligible to receive tax credits and we can help you review plans and contributions.
Q: Do I have to navigate through this process on my own?
A: NO! As a Discovery client you have full access to our Exchange and Health Care Reform experts. We are happy to come out to your office and meet with you to discuss benefits and exchange options and explain how we can navigate the changing landscape of health care for you.
Contact us at 303.225.0400 or visit us online at www.discoveryoutsourcing.com
Q: Which employers are subject to the requirement to provide insurance to employees beginning in 2015?
A: In 2015, employers with 50 or more full-time employees to provide coverage to employees and dependents. These businesses could be penalized by the IRS in 2016 if at least one full-time worker receives federal financial assistance (tax
credits) through Connect for Health Colorado, based on income. Penalties include a fine of $2,000 annually for each employee beyond the first 30 employees, as well as a penalty of $3,000 if the employer offers insurance but it is not affordable or does not does not provide the federally approved minimum coverage for each employee who receives a tax credit.
Q: Are there multiple carrier choices and plan options?
A: Yes, there are multiple carriers and 4 plan tiers in Colorado: bronze, silver, gold and platinum. Each coverage level shows the expected portion of total health care costs a health insurance carrier will pay.
Q: Will my employees have to pay a penalty to the IRS if I don’t offer group insurance coverage?
A: Starting in 2014, most people will be required to have health insurance or pay a penalty if they don't. Coverage may include employer-provided insurance, coverage someone buys on their own, Medicaid, Medicare or VA benefits.
Q: Can you explain what the "SHOP" program is?
A: The Small Business Health Insurance Options Program, or "SHOP" is a way for small businesses to shop for coverage through the new marketplace. The program provides a maximum tax credit for companies meeting the following
criteria:
- Employers with fewer than 10 full-time equivalent employees
- Pay average annual wages below $25,000 (excluding the wages of owners and their families)
- Contribute 50% or more toward employees’ single coverage premium
Q: Can Discovery Outsourcing help me determine if my company is eligible?
A: Yes, we can help you determine if you are eligible to receive tax credits and we can help you review plans and contributions.
Q: Do I have to navigate through this process on my own?
A: NO! As a Discovery client you have full access to our Exchange and Health Care Reform experts. We are happy to come out to your office and meet with you to discuss benefits and exchange options and explain how we can navigate the changing landscape of health care for you.
Contact us at 303.225.0400 or visit us online at www.discoveryoutsourcing.com