When Will You Stop Writing Individual Health?

[bluediamond]

While running a health insurance quote for a family this morning, it occured to me that they PROBABLY WILL NOT keep the policy beyond 12/31/2013, because they'll have to start paying the infamous annual Penalty-Tax to the IRS and also forgo any potential government subsidies.

Are any of you who write individual health right now planning on simply not doing so after a specific date, due to it being a waste of time? (i.e. not enough months of commissions to make it worthwhile)

-Allen in Chicagoland

I must be misreading this. Why would someone have to pay the penalty if they have health insurance going into 2014?

 

[Yagents]

I must be misreading this. Why would someone have to pay the penalty if they have health insurance going into 2014?

I think Allen may have sold them a higher deductible type NON GF plan (5k-10k), which will not qualify as creditable coverage under the new law (max $5950, 10 EHB's, Min 60% AV). Not qualified, pay penalty. Not qualified, ins co may be required to upgrade plan, and increase premium thru the roof.

So, getting back on topic, Allen is stating that all new IFP plans that you sell now have an expiration date on them. What are you going to do for the next year?

 

[bluediamond]

That makes sense. In fact I knew that but had forgotten, hell we have meetings on ahca, supplementary products, life insurance and with AEP coming up it's just getting hard to remember my name.

Now, I don't know what I'm gona do the next year. Even though I am captive but I can come and go as I please now. I have a P & C, never sold it so I suppose I would have to start at the very bottom as a csr working personal lines and have a set number of hours to work. I really hate that after 16 years of knowing if I want to come in at 10 or leave at 2 I can. Walmart greeter was an option but I understand they're cutting back on greeters. School bus driver but I'd be in prison in less than 3 months, so I just don't know. AEP has carried me this far this year, but who knows.

 

[taterpeeler]

I got me some good crack... And the hoes are premo. Don't forget about my gig...I need brokers

 

[DS4]

When you say "writing health insurance", I assume you mean sitting down with the applicant f2f, and completing the application?

I quit doing business that way when commish
tanked.

I now email quotes with a link to my web site to electronically apply.

I'm still writing the same amount of IFP, but doing the appropriate effort for the commish

 

[Dave020]

When you say "writing health insurance", I assume you mean sitting down with the applicant f2f, and completing the application?

I quit doing business that way when commish
tanked.

I now email quotes with a link to my web site to electronically apply.

I'm still writing the same amount of IFP, but doing the appropriate effort for the commish

As long as they have WiFi at the poker tables, we're good.

 

[AllenChicago]

I must be misreading this. Why would someone have to pay the penalty if they have health insurance going into 2014?

To avoid the penalty-tax, everyone who purchases their health insurance on the individual market must have either a "grandfathered" policy (purchased prior to 3/23/2010), or a policy that includes all the "Minimum Essential Coverage" criteria. Here's a list (as it stands now) of the benefits that EVERY new major medical plan must have in 2014 to keep the insured from paying the annual Penalty-Tax for having a non-compliant policy. Most states will add additional state-specific benefit/coverage requirements.

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Ambulatory patient services
Emergency services
Hospitalization
Maternity & newborn care
Mental health
Prescription drugs
Rehabilitative services
Laboratory services
Pediatric services, including
dental & vision care​

Ref: http://www.google.com/url?sa=t&rct=j&q=what%20will%20be%20the%20minimum%20essential%20required%20in%202014%3F&source=web&cd=8&ved=0CE8QFjAH&url=http%3A%2F%2Fthebenefitsblog.com%2Fwp-content%2Fuploads%2F2010%2F11%2FYour-Health-Plan-in-2014.pdf&ei=NY8kUMzVKeKW2QWC1IG4Dw&usg=AFQjCNH5q2wA1Fa0NL-tI_eFgkqI8yDJXw&cad=rjt​

The plan I sold which caused me to start this thread is the BCBS-IL $10K Deductible HSA. It does not have Maternity included, or Pediatric Dental/Vision. Therefore it would fail the ObamaCare test, which means the family would have to pay the Penalty-Tax each year.
-ac​

 

[Yagents]

The 10k deductible will be illegal too, the actuarial value on that puppy is about 30% (my guess), and it's only that high because of the free butt scopes up front.

 

[0b1kanobee]

So how much is the penalty for not having a true major medical policy? Is it a flat amount or some kind of equation to figure it out?

 

[AllenChicago]

The 10k deductible will be illegal too, the actuarial value on that puppy is about 30% (my guess), and it's only that high because of the free butt scopes up front.

"Free Butt Scopes Up Front"... Are you referring to accessing the colon via a colostomy port in the mid-abdominal area?

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So how much is the penalty for not having a true major medical policy? Is it a flat amount or some kind of equation to figure it out?

News outlets normally quote the flat amount, because it's easier on the brain. But, it looks like the equation/formula is not that simple. Here's an excerpt from a recent article from ABC News.


Source Link: Health Care Law Mandate ‘Tax’: How Much Is It? - ABC News

"The health care law sets out a formula to determine your penalty, which will be assessed and collected by the IRS as part of your federal income taxes.

The penalty will be the greater of a flat dollar amount per person, OR a percentage of your taxable income. For dependents under 18, the penalty is half the individual amount.

The annual penalty is capped at an amount roughly equal to the cost of the national average premium for a qualified health plan — in other words you cannot be forced to pay more than it would have cost to buy a plan in the first place.
Flat dollar amount for individuals: $95 in 2014; $325 in 2015; and $695 in 2016; increases indexed to inflation after that, subject to a cap.

For example, courtesy Blue Cross Blue Shield: An uninsured family of three (two parents and one child under 18), not exempt from the mandate, would have a flat dollar penalty of $1,737 in 2016.

Percentage of individual taxable income: fixed percentage of household income in excess of tax filing threshold – 1% in 2014; 2% in 2015; 2.5% in 2016.

For example (again courtesy Blue Cross Blue Shield): An uninsured, non-exempt individual with household income of $50,000 would be forced to pay 1 percent of the difference between $50,000 and the tax threshold (let’s say $10,00 for an individual in 2014), or roughly $400. Since $400 is greater than $95, this individual would have to pay $400."

-ac