Patient Protection and Affordable Care Act discussed at local forum

THE WOODLANDS, Texas -- Many citizens are confused about what exactly the Patient Protection and Affordable Care Act entails, which is why High Point Financial Group President, Mike Fortner, hosted a forum summarizing and explaining the act to residents on July 27.

In the hour-long forum, Fortner summarized PPACA and presented the most relevant facts for both everyday citizens and business owners. Fortner’s main concern was that many people do not know the details of the act.

“People need to know before the law takes effect exactly what they have to do,” Fortner said. “They don’t want to be scrambling at the last minute.”

The forum broke the act down into several sections, including insurance requirements, rate restrictions, requirements for individuals and businesses, tax credits and penalties for individuals and businesses.

The lifetime limits for insurance plans have been abolished and dependent coverage has been extended to age 26. Insurance policies will be required to cover preventative care services, such as mammograms and immunizations. The act will also require insurance companies to cover those with pre-existing conditions.

Rate restrictions will be established allowing insurance rates to be based only on geographic area, age, tobacco usage and whether it is a family or an individual enrolling.

Businesses that employ more than 50 full-time employees must offer health insurance to their employees, and individuals will be required to purchase health insurance, which must meet certain criteria. If they choose not to, they will be penalized with a fine.

“Are you willing to accept the fact that if you do have something major happen to you, there’s going to be a huge bill?” Fortner said. “As far as payment, that fine is going to come through your taxes.”

Individual tax credit for those with incomes between 100 percent and 400 percent of the federal poverty level will range between 2 percent and 9 percent. A subsidy calculator can be found at this website. Individuals will be penalized up to 1 percent of their income for not purchasing insurance in 2014, with the rate increasing each year. Tax credits of up to 35 percent from 2010 to 2013 and 50 percent in 2014 will be issued to businesses of less than 25 employees if coverage is purchased through the exchange. If a business of more than 50 employees does not offer coverage, they can be fined up to $2,000 per employee after 30 employees.

“I think a lot of employers will just work to stay under 50,” Fortner said.

Exchanges will be established to compare coverage for individuals and businesses under 100 employees. The exchanges will offer different levels of coverage from bronze to platinum.

“The change is not what scares me,” Fortner said. “What scares me is, is it going to work for the consumer? The hassle becomes if the exchanges are set up on time.”

For information on PPACA, visit Healthcare.gov or kff.org. For anybody interested in a forum summarizing the act, contact Mike Fortner at the email provided or 713-702-8766.