Goldenrule - Super Duper Deductible Rollout

[Yagents]

Goldenrule rolled out the highest deductibles and coinsurance offerings to date. $12,500 deductibles with 70/30 coinsurance for another $10,000 of risk. Looking forward to seeing these low ball prices. Why go this route when it's a short term band aid for 2013, before these plans blow up in 14'? Maybe a move toward market share gathering and buying the client to build a relationship when the exchanges launch? You would also think underwriting will ease up a bit to not piss anyone off now, and still be on the clients' radar come 14' exchange redux.

https://www.uhone.com/filehandler.ashx?filename=41139-G201212.pdf

 

[AllenChicago]

YAgents, Golden Rule is doing what you and I were talking about in another thread last week. HHS shows no indication (yet) that they are going to outlaw these type of plans. If the plans do not adhere to all of the Obamacare mandates, they will simply become "Near Major-Medical" policies.

Sure, people who own these will be subject to the Penalty-Tax, but with premiums that will be very low compared to Exchange plans, the "Near Major Medical" policies will still appeal to many. My business owner clients buy up to $25,000 deductible plans and never complain when a medical situation occurs. I'm hoping they'll be able to keep the policy and just pay the penalty-tax, if their accountant advises it.
-Allen

 

[Yagents]

I just don't see it, but I may be wrong. I just don't see why there are GF and NON GF labels then. I can't explain why HHS passed out waivers a year ago. And I just don't know why they came out with this law if their intention was not to eliminate scaled down plans.

All of the company reps that I've spoken to, state that NON GF plans will be required to upgrade. We'll see as things roll out in the coming months.

 

[Ann H]

YAgents, Golden Rule is doing what you and I were talking about in another thread last week. HHS shows no indication (yet) that they are going to outlaw these type of plans. If the plans do not adhere to all of the Obamacare mandates, they will simply become "Near Major-Medical" policies.

Sure, people who own these will be subject to the Penalty-Tax, but with premiums that will be very low compared to Exchange plans, the "Near Major Medical" policies will still appeal to many. My business owner clients buy up to $25,000 deductible plans and never complain when a medical situation occurs. I'm hoping they'll be able to keep the policy and just pay the penalty-tax, if their accountant advises it.
-Allen

The amount of penalty/tax is a problem for those high wage earners who can afford a $25,000 deductible, though. In 2016 the penalty/tax goes up to $695 per person or 2.5% of Adjusted Gross Income. On a $200,000 annual income that is a $5,000 penalty/tax.

The penalty/tax starts low ($95 per person or 1% of AGI). That might be low enough to motivate people to buy "near major medical" plans as you called it, and if enough people do that it could make a major dent in Obamacare goals.

 

[rousemark]

The amount of penalty/tax is a problem for those high wage earners who can afford a $25,000 deductible, though. In 2016 the penalty/tax goes up to $795 per person or 2.5% of Adjusted Gross Income. On a $200,000 annual income that is a $5,000 penalty/tax.

The penalty/tax starts low ($95 per person or 1% of AGI). That might be low enough to motivate people to buy "near major medical" plans as you called it, and if enough people do that it could make a major dent in Obamacare goals.

Won't dent the major goal of OC.. In fact, it will help. If enough people elect the NM plans or to just go bare and pay the penalties, the claim will be made, "See, the exchanges are not working. We simply must have Single Payer". That is the only goal the OC backers really have in mind.. A complete governmental takeover of the healthcare system that can only be accomplished through Single Payer.

 

[ABC]

I looked at these plan and I really don't care to sell them.

The big question is if you are not on a QHP, how does the gov. collect the tax penalty?

 

[Yagents]

They can only collect it if you receive a tax refund. Otherwise, it's due but they won't chase you.

 

[FL P&C Broker]

They can only collect it if you receive a tax refund. Otherwise, it's due but they won't chase you.

So what is going to happen if you owe? Can you file your taxes and then short the check by whatever the penalty is?

 

[Yagents]

So what is going to happen if you owe? Can you file your taxes and then short the check by whatever the penalty is?

Yup. If you want to avoid paying the penalty, you may consider underfunding tax payments, but still pay no less than the year prior to avoid underpayment penalties. So, if you make less money, you won't be able to avoid a refund, and the penalty will come out. At least that's how I understand it, and the normal disclaimer: I'm not an accountant, and I in no way endorsing not paying your IRS taxes/penalties. Everyone must pay their "fair share".

 

[FL P&C Broker]

This is going to be a cluster f*ck

Dear IRS,

Please see my enclosed tax return stating that I owe $5,000 for the year ending 2014. I have subtracted out $95 and included a check for $4,905 for the health insurance penalty that I do not wish to pay.