For the family of a small business owner, the reduction of the MAGI because of the 20% deduction could drop any dependents under 18 years old into Medi-Cal. A family of four earning $70,000 makes all the household members eligible the tax credit subsidy through Covered California. If the family reduces their income by the 20% deduction, the new income is $56,000. That is below 266% of the federal poverty level for a family of four and all dependents 18 and younger are then deemed eligible for Medi-Cal.
Covered California solidified its role as a big marketing machine for health insurance by announcing a contest to promote its Small Business Health Option Program or SHOP. The top producer of quotes for the Covered California small group health plans will win 100 hours of telemarketing according a sales seminar slide shown during their seventh sales […]
The Affordable Care Act requires that notices about the health insurance exchanges have to be given to current workers no later than Oct. 1, 2013. The notices have to be given to new workers on the day they are hired.
Sole proprietors with small group plans might be surprised when they are notified that their current health insurance company will be discontinuing their coverage in 2014. With the advent of guarantee issue individual and family plans under the new Affordable Care Act (ACA), some carriers have already decided to discontinue issuing small group plans to sole proprietors.
Covered California released their small business health option plans (SHOP) for small employers and they might prove competitive for some companies with less than 50 employees. There will absolutely be small businesses that will not participate because they don’t want to support any government bureaucracy, even if it is to their benefit.
From past experience, Lujan’s focus has been in the small business group market and that was the area he was initially brought in to manage. In recent months it has become evident that SHOP may not play as well as some people had anticipated. On top of the nervousness from small businesses and their lack of enthusiasm over the ACA, Anthem Blue Cross announced they won’t participate in SHOP.
The overwhelming majority of the funds in the individual market are allocated to organizations targeting specific counties to promote Covered California.
I’ve talked with numerous people who, like me, had high hopes that CO-OPs would be a consumer focused option where the business model was not driven by profits.
While having a fully functional small business Covered California portal is important, it still remains to be seen how many of the estimated 375,000 small businesses in California will actually participate to set up health insurance plans for employees.
With Governor Brown’s signature on AB 1846, California can now move forward with the development of Consumer Oriented and Operated Plans (CO-OP) health insurance programs for small groups and businesses.