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I’m not sure if you heard, but the federal government is on lockdown these days and it’s all because of a little law called the Affordable Care Act (ACA). Despite all the drama between battling Congressional parties, the program went live this week, opening exchanges that promise to give low income Americans access to affordable healthcare for the first time...ever.
While much of the rhetoric surrounding the ACA — also known as Obamacare — focuses on the poor, let’s not forget that small businesses are also likely to benefit. Startups, like the one you may work for, have historically struggled to provide healthcare to their employees. This is because group coverage is expensive, but more affordable individual coverage often excludes people with pre-existing conditions.
“This all changes in 2014 when all plans — individual and group coverage — will be guaranteed issue under the ACA,” says Mark Colwell, Director of Consumer Marketing at GoHealth, an online portal for comparing and purchasing individual healthcare. “In other words, it will be illegal to deny, limit or charge more for coverage based on pre-existing conditions”
GoHealth is at the forefront of empowering customers to make the right decisions about their healthcare options. Over the past twelve years, GoHealth has helped more than 30 million Americans compare and purchase insurance plans (and they bootstrapped for most of that period). They’ve got partnerships with some 10,000 licensed agents and 100 insurance carriers across the country, and they emphasize value, not just affordability.
Today, GoHealth announced a nationwide partnership with another local company, Walgreens, through which the two companies will support each other in educating consumers about the new law and will direct them to enroll online. With 62 percent of uninsured Americans admitting they don’t know enough about the new law, a lack of knowledge is one of its biggest barriers to success. Walgreens, whose stores serve six million people daily, has committed to directing customers with questions about the new healthcare bill to GoHealth, either through an online portal or via phone at 855-487-6969.
“Our goal is to help ensure people fully understand the marketplace, and working with GoHealth, to provide personalized consultation from experts who can help them make informed decisions," said Walgreens senior vice president and chief strategy officer Brad Fluegel, in a statement.
With so many changes looming, it’s important for everyone in the startup world, whether you’re an employer or an employee, to be informed. According to Colwell, there are a few major things employers need to know about healthcare under the ACA:
Companies with fewer than 50 employees aren’t required to offer group health insurance, but doing so can earn them tax credits.
The Department of Labor requires employers to alert employees to changes to healthcare under the ACA.
Employers can keep employees happy by helping them navigate the new Marketplaces. GoHealth can be a great resource for this.
“All businesses [with more than 50 employees] have another year before the ACA implements the health insurance mandate for all companies,” Colwell says. “To add value, startups should have a clear and simple path employees can use to obtain health insurance that is supported by the company, even if the company cannot afford to pay directly for that coverage.”
While startup employers will certainly do their best in this transition period, it’s important for employees to be informed as well. Here’s what Colwell says you need to know:
Find out if your individual plan purchases qualify you for federal tax credits or subsidies. This depends on your income.
The ACA’s open enrollment period began on October 1 and will go through March 31, 2014. Getting signed up before the new year, though, will ensure that you start 2014 covered.
Overall, Colwell says the ACA is good news for startups and their employees in terms of providing better access to coverage. “All plans are now guaranteed issue, there are health insurance tax credits for small businesses, and available subsidies to help pay for coverage,” he says. “The ACA even mandates that all plans cover specific benefits, including maternity care.”
Knowing that, it’s hard to understand why Republicans would shut down the government over this bill — but that’s a conversation for another day.
