WESTERN STAR NORTHWEST
AND THE AFFORDABLE CARE ACT
Effective January 1, 2014, the Patient Protection Affordable Care Act (PPACA) which was enacted into law in 2010 becomes more fully realized. As of January 1, 2014, every citizen of the United States must carry insurance that meets the requirements of the Affordable Care Act (ACA). Those who do not will be taxed at increasing amounts starting at 1% of their family income in the first year.
This controversial and little understood law has been challenged by many groups and States all the way to the U.S. Supreme Court, who found it to be a legal form of taxation.
With the law, insurance and benefit plans are required to make significant changes. These changes include but are not limited to:
- Removing preexisting conditions limitations
- Removing lifetime and annual limits from coverage
- Increasing coverage for preventive treatments
- Requiring insurance companies to limit administrative expense
- Requiring insurance companies to change their underwriting models
In addition to these changes, the law requires modifications to Medicaid and created a new “marketplace” for the uninsured to buy health insurance. This marketplace (exchanges) provides the government with the means of providing benefits that are partially paid for with a tax subsidy. In addition, individuals who have income below 133% of the federal poverty level may be eligible for Medicaid in some states.
As an employee, you may not be eligible for this tax-subsidized coverage because Gordon Truck Centers benefit plans exceed all of the requirements of the law for eligibility, comprehensive coverage, and cost of participation. While this does not mean that you or a family member could not buy insurance from an exchange, it does mean that you are unlikely to receive a subsidy because of your eligibility for our plan.
For more information read the New Health Insurance Marketplace Coverage Options and Your Health Coverage form. You can also find additional information at HealthCare.gov.