What is the individual health insurance penalty beginning January 1, 2014?

What is the individual health insurance penalty beginning January 1, 2014?

What is the individual health insurance penalty beginning January 1, 2014? To make it simple, here are the current health insurance penalties if you do not purchase health insurance by January 1st next year: Year 1 (2014) – $95 per uncovered adult or 1% of your taxable income above filing threshold. Year 2 (2015) – $325 per uncovered adult or 2% of your taxable income above filing threshold Year 3 (2016) – $695 per uncovered adult or 2.5% of your taxable income above filing threshold * Individual filing threshold is defined as $9,750, and $19,500 for a family. Example of health insurance penalty for an individual: John is a single man and makes $50,000 per year.  $50,000 – $9,750 = $40,250. $40,250 x 1%  = $402.50 penalty for 2014. $805 penalty for 2015. $1,006.25 for 2016. Example of health insurance penalty for a family of four: The Swanson family has a annual income of $100,000. $100,000 – $19,500 = $80,500. $80,500 x 1% = $805 penalty for 2014. $1,610 penalty for 2015. $2,012.50 for 2016. In a recent survey by Fox News 64% of Americans are on the fence whether they will purchase insurance by January 1, 2014.  The cost for care is increasing annually while the subsidies are increasing too. Next year any individuals with income levels less than $44,680 or $92,200 with a family of four will be eligible for a subsidy.  The estimated health insurance premium through Covered California with a $2,000 deductible per person plan for two 40 year olds with two children is going to cost about $880 per month.  It will be interesting...
What group insurance benefits should I be offering my employees?

What group insurance benefits should I be offering my employees?

Many small to medium size businesses are constantly faced with issues of how to stay competitive in the ever-changing employee benefit marketplace.  With close to 40 years in the business as a California health insurance broker we have often been asked which group insurance or employee benefits are fundamental to keeping employees happy.  Here some tips when considering adding benefits: Slowly add benefits or lines of coverage versus adding too many benefits at one time.  It is far better to add new benefits as a company grows at open enrollment versus taking benefits away during the year if the success of the business does not go as planned. Medical insurance has always been and will continue to be at the forefront of importance as we move into Obamacare kicking in January 1, 2014.  Not only is every individual required to have medical insurance next year but the rates will be significantly increasing as 7.1 million Californians are in desperate need of coverage whether it will be through Covered California, SHOP or the private medical insurance market. Contrary to popular belief the next most important group insurance benefit is disability insurance, not dental insurance.  Some feel that dental insurance would be highly utilized, therefore it is a richer benefit for their employee workforce. A quality dental insurance plan it may cover $1,500 or $2,000 in a calendar year per individual and family member enrolled.  With disability insurance the insurance carrier is usually providing a benefit of 60% to 66.6% of an individuals income up to a maximum benefit of $25,000 per month which can be paid all the way to...
New Employer Requirement for Obamacare

New Employer Requirement for Obamacare

How does Obamacare affect you and your business? Something big is due October 1, 2013 – Due to the recent Obama health care changes for January 1, 2014, there is a new employer requirement for Obamacare. We want to remind all employers that they must provide their employees with the Model Notice for employers who offer a health plan to some or all employees. Employers have to offer their employees this document to inform them about the medical options that will be available next year. You can download the Model COBRA Election Notice by clicking here. For more information on our services and how we can help streamline your employee benefit program <http://www.bedrosian-associates.com/resource-center/employee-and-group-benefits”>click here. Below is the fine print from the Obama Administration: “Employers must provide the notice automatically and free of charge to each employee, regardless of plan enrollment status or of part-time or full-time status. The notice may be distributed by first-class mail, or electronically if certain requirements are met. Employers do not need to provide a separate notice to dependents or other individuals who are or may become eligible for coverage under the plan but who are not employees.” Contact us for a free consultation or call us at 650-367-0259 if you would like a copy of the Model Notice for Employers Who Do Not Offer Any Medical Coverage...
Advantages of using a broker for employee benefits

Advantages of using a broker for employee benefits

What are the advantages of using a broker for employee benefits broker like Bedrosian & Associates? As a California insurance broker, Bedrosian & Associates has been helping companies with their group insurance benefits for over three decades. We tell our clients how it is and educate them on the pros and cons of using a carrier based on their current situation. Let us be your guide through the insurance world and outsource all your insurance hassles to us. Let us be your private insurance experts and consultants. And guess what, our service is essentially free! Yes, free, since premiums are all the same for companies with 2-50 employees in California. We work with all of the carriers whether you go directly to Kaiser, Anthem Blue Cross, Blue Shield of California, California Choice, Health Net, United, SeeChange or Cigna the premiums includes our services. Not to mention we will give you a complimentary initial consultations to help point you to the right direction, with no commitment required. Why go directly to an insurance carrier if when you get our expertise of the market and service for free? Insurance carriers train their account managers to sell the most profitable products leaving the consumer on the hook for a majority of expenses. This often happens when plans not covering brand or non-formulary drugs are left out of the conversation with the consumer. For example, have you ever showed up at a pharmacy with the expectation that the drug you were prescribed would be covered since you have insurance and it was not? The expensive drugs you see on TV, the brand name,...
Advantages of Using a Kaiser Broker

Advantages of Using a Kaiser Broker

Why use Bedrosian & Associates as your insurance broker and consultant instead of going directly through Kaiser? As an official Kaiser broker, Bedrosian & Associates provides a list of free services and support for you and your employees: We can process all applications, forms and follow up with Kaiser on your behalf.  You just send us one email and consider the process complete. We will come out and give a face-to-face employee meeting each year to educate your employees in the Kaiser service.  Education leads to more employee appreciation of their benefits. We will review and recommend the most competitive Kaiser plans at the renewal.  When possible, we will negotiate rates and try to get your RAF reduced for additional premium savings. If employees are contributing to the Kaiser premium we can run personal rates sheets for them versus HR Administrator  having to calculate the rates. We will sign the HR Administrator up for our free HR Library and monthly newsletters to keep you up to date on changes and Health Care Reform. We are here for your employees as an independent 3rd party that your employees can trust and come to with any medical or other insurance needs. Most importantly, Bedrosian & Associates will update you with Health Care Reform and Obamacare information as it becomes available. Once you start working with us you will see it is far easier calling or emailing our office and getting an answer within a minute versus calling an 800 number.  The Kaiser bill and rates all remain the same as there is no additional cost for our service. For more information on...