Obama Care starts in 2014 and everyone is required to purchase health insurance or pay a fine.  Today the bill mandates that dependent children can stay on their parents plans (no added premium) to age 26 and children (under 18) cannot be declined for conditions that are pre-existing.  Preventative care is covered 100% without cost sharing.  We pay the higher taxes now (3 years worth) in preparation for 2014.  In the California  Health Insurance market we are seeing these three mandates raising rates 15-25% to absorb the costs.  So, the president’s statement that it will bring down premiums by $2500 for a family has not been accurate to this point. Frankly no one thought it would or could bring down cost as these mandates cost money and the cost are now shifted back to the members.  We are also seeing carriers pull out of selling insurance too-which isn’t good either.  Other the government can mandate how a company sells their policies-they cannot mandate that the sell insurance.  We are concerned that some of the region carriers may be forced out of business in California-where we have 6 carriers.  In the Midwest one carrier went out of business and dropped 800,000 people.  They all had to find new coverage.

The good news for some groups and individuals that purchased prior to March 2010 (when the bill passed) is that they grandfather out of the new mandates.  So, their plans are not as effected by the mandates as new plans or plans purchased after March 2010.  We are seeing lower premium increases with grandfathered plans.

I am staying close to these changes to keep my clients informed. If you have questions call me at my office at 877-840-0554

 Looks like they will try to repeal Obamacare.  How is this going to affect California Group and Individual Health Insurance? I am sure Obama will veto (if it even can pass the Senate) and if not then they will begin to pull it back piece by piece.  Gosh it is so simple what the American people want in terms of Health Care Reform-Bring the darn price DOWN.  Those are the reforms we all want and need.  The current bill did nothing to address the price and thus the bill did not listen to the wants and needs of the people.

If you have more questions hit me up on my web site or call me at my office at 877-840-0554-

Don Ariosto

California Health Insurance Agent

 The bill did nothing but add taxes, mandates, regulations and reduce the competition.  In October 6 carriers pulled out of CA selling individual child only plans.

 In the end unless you want to really increase your deductible there isn’t going to be a lower priced plan. The good news is that for you and 300 million people preventative is now 100% covered w/o out a co-pay-it was $40. I suspect you would rather pay the $40 and forsake the rate increase. This is just one example of why rates are skyrocketing.

 Happy Holidays

The California legislature quickly passed a bill to apply and be a part of the federal money available which amounts to about 800 million dollars.  The problem is the money is only slated for 3 years and will run out before new plans are available in 3 years.  This could present a major problem for California in the near future.

HHS Secretary Kathleen Sebelius says that the plan will offer people with pre-existing conditions who have been uninsured for at least six months the same kind of coverage that a healthy person would get.

The Affordable Care Act provides $5 billion in federal funding to support PCIPs in every state-including California. For more information on how the this plan will affect California Health Insurance at 877-840-0554.

Don Ariosto

You should seek advice from an accountant and attorney, but here are a few things to consider:

In an attempt to help our clients calculate how this tax credit may affect your business:

Count staff. To qualify for a credit, you must have no more than 25 full-time equivalent employees. To determine the total number of employees (not counting owners or family members) add together the number of full-time employees and the number of full-time equivalents for part-time employees (divide the annual total hours worked for part-time employees by 2,080).

Calculate Wages. Your average annual wages must be less than $50,000 and you will need to pay at least 50% of the premiums to qualify for the tax credit.  If you have uninsured employees If you do not cover your employees – the 2010 tax credit may make this the year to start. The tax credit allows you to both deduct your premium contribution as an expense and receive a credit that reduces taxes due. For example, if you qualify for the credit and you pay for $50,000 of employee health care premiums, the combined credit and deduction could reduce your tax bill by almost $23,000.1  Help your part-time employees find and enroll in new programs. You aren’t required to cover your part-time employees, but you can help them find and enroll in the new products and programs that are available this year. For example, some employees will be eligible to enroll in their parents’ health insurance plan. Some may be eligible to enroll in existing public programs. Some can find inexpensive individual coverage and even shop for small and large group plans. For additional information, you can visit the IRS Web site at

http://www.irs.gov/newsroom/article/0,,id=221511,00.html,

alternatively, contact your accountant, attorney; visit us at our web site at http://www.californiainsurancefinder.com/