"The unsaid truth is that older employee’s expensive premiums can dissuade employers from hiring them,” said Larry Hurwitz, Founder and President of CA Medicare.
Calabasas, CA (PRWEB) May 13, 2017
One of the reasons that the Affordable Care Act has seen health insurance premiums rise is because young healthy people have decided that it is cheaper to pay the penalty than purchase a health insurance plan. The ACA imposed a 3:1 limit on “age rating” – which restricted insurers from charging older adults more than 3 times more what young people pay. However, under the American Health Care Act, the age rating will increase 5:1. This will cause rates for employer and individual coverage for older people to rise. "The unsaid truth is that older employee’s expensive premiums can dissuade employers from hiring them,” said Larry Hurwitz, Founder and President of CA Medicare.
However, a mitigating factor to this new imposition will be the increased tax credits for older people. The AHCA will now issue tax credits to help people afford coverage on individual plans. This will range from $2,000 for those in their twenties and $4,000 for those in their early sixties.
Under the AHCA, tax credits would begin to phase out at $75,000 for individuals and $150,000 for households. Tax credits would be eliminated for individuals who earn more than $215,000 annually, and a household that makes more than $290,000.
The 5:1 “age rating” for older people also applies to employer groups under 100 employees. Employers can offset this by offering to pay for their employees Part B Medicare Premiums and Supplements.
While Medicare isn’t ACA compliant, if the ACA employer plan is being offered then it won’t affect the requirement that employers offer their health plan to 95% of the full-time employees to avoid the $2,000 per employee penalty.
Currently, Medicare is an “employer payment plan,” but can be integrated with group health coverage. To be compliant, the employee must be enrolled in Medicare Part A and B. Under the payment plan, the premiums are deductible under section 106 of the Internal Revenue Code. This payment is not taxable to the employee.
Breakdown of costs:
$134 Premium for Medicare Part B
$170 for the Medicare Supplement, Plan F in LA County for a 65-year-old
$30 for a typical Prescription Drug Plan
Less than $400
For every employee that enrolls in Medicare, employers can cut the premium by approximately two thirds while offering employees less out of pocket costs. Benefits are a significant portion of an employer’s total compensation package. A $400/month expenditure per employee should drive down the costs.
Learn more now at: https://camedicare.com
# # #
CA Medicare was created to help match individuals turning 65 or seeking to change Medicare coverage in California.
Contact: Larry Hurwitz, President of BenefitPackages.com
larryh(at)benefitpackages(dot)com
800-356-3615