Exchanges Are Mistakes...not Markets

[RayNY]

To be honest, almost all are married Hasidim couples. I'm sure you understand the belief set that goes with that crowd. They tend to have a solid income, even with 15 kids I don't think they'll qualify for a subsidy.

 

[Ann H]

Wow, thanks for that. We have some clients with tons of kids (8-15) and the IRS charts stop at a family of 8.

For the maximum penalty, is it tied to the minimum Bronze Level Individual plan? I ask because income is household based, so I presume if you are a family you'd be charged up to the minimum you could obtain coverage for your family.

First, I noticed an error in a post I made a few months ago on this thread. I said the penalty was capped at the price of the lowest cost Bronze plan IN YOUR AREA, when actually it is the NATIONAL AVERAGE premium for the lowest cost Bronze plan.

In answer to your question, it is my understanding that "national average" refers to geographical averages, not the rating factors of family makeup, age and tobacco use. If that is correct, it would mean it would still be rated according to your family census, except using a national average rather than local. Nothing complicated here, huh? Also, the national average is for products offered by exchanges, not the private market. I would like confirmation on it being a geographical average, but I haven't found any article that details it.

This link takes you to a pretty good flowchart from Kaiser, although it is not perfect, and some regulations regarding exemptions have come out since it was created. http://kaiserfamilyfoundation.files.wordpress.com/2013/04/requirement_flowchart_3.pdf

 

[Norwayguy]

First, I noticed an error in a post I made a few months ago on this thread. I said the penalty was capped at the price of the lowest cost Bronze plan IN YOUR AREA, when actually it is the NATIONAL AVERAGE premium for the lowest cost Bronze plan.

In answer to your question, it is my understanding that "national average" refers to geographical averages, not the rating factors of family makeup, age and tobacco use. If that is correct, it would mean it would still be rated according to your family census, except using a national average rather than local. Nothing complicated here, huh? Also, the national average is for products offered by exchanges, not the private market. I would like confirmation on it being a geographical average, but I haven't found any article that details it.

This link takes you to a pretty good flowchart from Kaiser, although it is not perfect, and some regulations regarding exemptions have come out since it was created. http://kaiserfamilyfoundation.files.wordpress.com/2013/04/requirement_flowchart_3.pdf

That's okay Ann as the people who wrote and passed the law made some errors too.

 

[stuy119]

First, I noticed an error in a post I made a few months ago on this thread. I said the penalty was capped at the price of the lowest cost Bronze plan IN YOUR AREA, when actually it is the NATIONAL AVERAGE premium for the lowest cost Bronze plan.

In answer to your question, it is my understanding that "national average" refers to geographical averages, not the rating factors of family makeup, age and tobacco use. If that is correct, it would mean it would still be rated according to your family census, except using a national average rather than local. Nothing complicated here, huh? Also, the national average is for products offered by exchanges, not the private market. I would like confirmation on it being a geographical average, but I haven't found any article that details it.

This link takes you to a pretty good flowchart from Kaiser, although it is not perfect, and some regulations regarding exemptions have come out since it was created. http://kaiserfamilyfoundation.files.wordpress.com/2013/04/requirement_flowchart_3.pdf

Huh, that sounds fairly political. The people in big cities and in areas with higher premiums (mainly Dem-controlled areas) will be brought back to the middle being subsidized by rural areas and areas that controlled their health care costs initially.

Got it.

 

[somarco]

The people in big cities and in areas with higher premiums (mainly Dem-controlled areas) will be brought back to the middle being subsidized by rural areas

Actually the exchange business is just the opposite.

Big cities with slightly larger networks have lower rates than rural areas and very sparse networks where people may have to drive 100 miles or more to the nearest hospital.

Based on preliminary rates, Atlanta has the lowest rates in the state.

 

[stuy119]

Yeah, I worded it poorly - I was comparing to today's rates/networks.

 

[AllenChicago]

Names of the six Illinois carriers are now confirmed by CRAINS Business. See the "ABE Exchange" thread in the ILLINOIS forum if you're interested.
-ac

 

[RayNY]

Ann, thanks for the link.

I presume "Bronze Coverage" in that article means that if one filed their taxes as a family, the penalty would be based off the family coverage rates.

It also states that they estimate $12-$12.5k for a bronze family plan on average. That means you can make up to $1.2MM or so and still have to pay the full 1% first year penalty.

$12,000 sounds SO MUCH worse than $95.

 

[somarco]

$12,000 sounds SO MUCH worse than $95.

Probably no big deal to someone making $1M a year.

 

[stuy119]

Probably no big deal to someone making $1M a year.

We call it a "rounding error."