Health Care Reform and Self Employed Health Insurance

A lot has been said about the health care reform. It means different things to different people. Some look at it as the start of catastrophic problems in our health care system but some look forward to it to solve their health and insurance concerns.

To self-employed individuals, the health care reform looks promising. It can provide Americans with more affordable and accessible self-employed health insurance coverage. Plus there are tax credits to look forward to. Here’s how it will work for small business owners.

SHOP exchanges. Supporters of the new healthcare law plan to establish a health insurance exchange market called Small Business Health Options Programs or SHOP exchanges by 2014. Through SHOP, business owners can purchase inexpensive health insurance coverage because bigger risk pools are being created.

Expect subsidies. Self-employed individuals often have a hard time acquiring self-employed health insurance on their own. That is why the government will give subsidies to those who qualify. Those who earn 400% of the poverty level will be given financial assistance.

Tax credits for small business owners. Small business owners that have less than 25 employees and are contributing at least 50% towards their employees’ premiums, are entitled to a credit of 35% of the premium rate.

Guaranteed coverage for pre-existing conditions. By 2014 insurers will be required by law to provide coverage and not exclude pre-existing conditions. No more exclusions. Coverage will be granted upon activation.

More Medicaid eligibility. By 2014, Medicaid will accommodate more qualified people into the system.

No more lifetime limits. There will be no more lifetime limits on policies.

More Benefits for Employees. Small business employers will now be required to include preventive care in their health benefits package.

These are only some of the provisions we can expect from the Patient Protection and Affordable Care Act. But while 2014 is still on the horizon, the provisions of the healthcare reform are still being improved. Let’s wait for more developments, particularly in the state health care programs and see how this could help small business owners and self-employed individuals.