My employer, with over 1500 employees, is debating whether to offer healthcare insurance to us or drop completely due to the expensive cost it will be for the company who purchases in bulk. I understand they will be paying a $2000 per employee penalty to the IRS due to them declining. It appears that we will be needing to buy our own. Will the insurance premiums still be a pre-tax payment? Are there affordable options for me and my family?

If your employer drops your healthcare insurance coverage and you have to buy your own plan, you would no longer be able to pay your premium with pre-tax dollars. Effective in 2014, if your employer stops offering coverage, you will be able to purchase a plan on the health insurance exchanges in October 2013 in every state. There will be subsidies available to people with incomes up to 400 percent of the federal poverty level ($92,200 for a family of four in 2012) to help make coverage more affordable. The subsidy has to be approved after submitting an extensive 18-22 page application.

Information about the Patient Protection and Affordable Care Act is available at:

http://housedocs.house.gov/energycommerce/ppacacon.pdf.

“The thoughts and opinions expressed in this article are not to be taken as legal advice. The ACA changes on a daily basis and the material covered is a reflection of the author’s research into the bill on a given day. While every attempt is made to communicate with accuracy you should consult your lawyer or CPA for advice on how the ACA will affect you and your situation.”