Health Insurance – What are the laws?

Situation:

The Affordable Care Act (ACA) was passed into law on March 23, 2010. While full implementation of the act will not take place until 2014 there are several items in it that are already affecting small business owners. The confusion over what is now required by ACA requires some explanation for all business owners. Here is what has currently been implemented as a part of the full implementation of the requirements within the ACA.

Analysis:

1. Business owners are not now required to provide any type of health insurance for their employees regardless of the size of their company.
2. Individuals are not required to buy their own insurance plan.
3. A family insurance plan now must include all dependent children up to age 26.
4. Children cannot be turned down for their own individual health insurance policy regardless of preexisting conditions. As a result of this no health insurance company now offers any type of child only policy. Many children of single parent homes are now without coverage as the parent cannot afford to pay for it through their employer.
5. The State of Ohio requires that group insurance plans must insure all employees of a company that apply for coverage. The coverage will be subject to underwriting and can be rated for preexisting conditions.
6. The State of Ohio requires that employers pay at least 50% of the policy premium for their employees.

Solution:

ASBC recommends all employers start working with a reputable independent health insurance broker who will follow all ACA developments as they relate to implementation within the State of Ohio. Governor Kasich has decided that Ohio will not implement any type of exchange and has notified the implementation team for the ACA that any type of exchange will be set up by the federal government. Setting up a state-run exchange would cost Ohio $43 million according to Sen. Rob Portman (R – Ohio). A full description of the current implementation of the ACA can be found at http://www.kff.org/healthreform/upload/8061.pdf.