Kentucky Health Insurance

Kentucky Health Insurance

Many Kentucky residents are unaware of how the happenings on the healthcare front will affect them and their decisions on Kentucky health insurance. Many are struggling to pay their premiums and the individual mandate could raise premiums, thereby raising the number of uninsured. Though the federal government says it will pay the premium for such people, this will be brought about by raising taxes for others.

The Supreme Court will hear the constitutional challenge to the Obama health care law on March 26-28. Long debates are expected on various pressing issues at the center of which is the individual mandate of the law, which requires people without insurance to buy coverage by 2014 or pay a penalty. Questions that will come up:

•    Whether this first-of-its-kind mandate should be invalidated because it represents an unconstitutional exercise of Congress’ powers to regulate commerce and to levy taxes.

•    Whether Obamacare’s Medicaid expansion affect the extent of state sovereignty as it requires the states to vastly increase their spending on healthcare or give up all the federal Medicaid funds they receive? At present, Medicaid accounts for 40 percent of all federal funds granted to the states, 7 percent of all federal spending, and 20 percent of state budgets on average.

•    Whether the hundreds of other provisions of the law will stand or whether some of them will be abandoned, such as tax credits for small businesses, individuals purchasing health insurance, and taxes on big businesses that do not provide their full-time employees government-approved coverage.

The arguments supporting the individual mandate is that requiring people to purchase health insurance will end the practice of health insurance companies denying coverage on the basis of pre-existing conditions. Proponents of the law also argue that the uninsured do not pay for billions of dollars worth of emergency-room and other healthcare services. This raises the premiums paid by insured families as the cost burden is shifted to them.

Kentucky residents should know that the mandate is not scheduled to come into effect until 2014, and if it does, the initial fines would be due only in 2015.  Whatever the outcome, the most important thing is that Kentucky health insurance should be available and affordable for all, regardless of income and age.

Health Insurance Kentucky

According to census data, the number of uninsured Kentucky residents in 2010 was 640,000 or about 14.9% of the state’s population. If you are among the uninsured, it’s time to start thinking about purchasing a health insurance Kentucky policy as the individual mandate of Patient Protection and Affordable Care Act (PPACA) requires that all Americans have minimum essential coverage, with some exceptions, beginning in 2014. Those who do not have health insurance will have to pay a penalty. To understand the individual mandate, it’s necessary to understand ‘minimum essential coverage’.

What Minimum Essential Coverage Means

You would be considered as having minimum essential Kentucky health insurance if you’re covered under any of the following programs:

•    Government-sponsored plans such as Medicare, Medicaid, CHIP, TRICARE, the veteran’s health program, and so on
•    An employer-based plan
•    A grandfathered health plan (that was in existence before the health reform law was passed)
•    A plan offered in the individual market within Kentucky and which is at least at the Bronze level (a health plan that covers 60% of the cost and requires the enrollee to pay about 40%)
•    Any other coverage as approved by the HHS Secretary

Health insurance coverage consisting of excepted benefits, such as dental-only coverage is not included in minimum essential coverage.

Distinguishing Between Minimum Essential Coverage and Essential Health Benefits

The PPACA requires certain health insurance plans sold after 2014 to include a basic package of ‘essential health benefits’ including hospitalization, outpatient services, maternity care, prescription drugs, emergency care, and preventive services among other benefits. Benefits could differ among states.

Minimum essential coverage is coverage that is required to avoid the individual mandate penalty and does not have to include these essential health benefits.

Penalty for Health Insurance Kentucky Noncompliance

If you do not comply with the conditions for the individual mandate, you would have to pay a penalty that is the greater of:

•    In 2014: $95 per adult and $47.50 per child (up to $285 for a family) or 1.0% of household income over the filing threshold
•    In 2015: $325 per adult and $162.50 per child (up to $975 for a family) or 2.0% of household income over the filing threshold
•    In 2016 and beyond: $695 per adult and $347.50 per child (up to $2,085 for a family) or 2.5% of household income over the filing threshold

Starting 2017, the penalties will be raised by the cost-of-living adjustment.

You would not have to pay the penalty if you’re in any of the following categories: cannot afford coverage as specified under the new mandates; have income below the federal income tax filing threshold; have religious reasons; are an American Indian; have not had health insurance for less than three months; have received a hardship waiver from the Secretary, or are residing outside of the United States, or are bona fide residents of any possession of the United States.

Comprehensive, Affordable Kentucky Health Insurance is Available

Now that you know the pitfalls of not having a health insurance Kentucky plan, don’t lose time. Contact an experienced licensed health insurance broker and benefit from professional guidance to purchase an affordable plan that meets your needs and federal mandates.