MBO Partners ACA Webinar Slides
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MBO Partners ACA Webinar Slides Presentation Transcript

  • 1. The Affordable Care Act: What Independent Consultants Need to Know Presented by Independent Worker Experts Gene Zaino and Dave Putt December 2013
  • 2. Presenters Gene Zaino President and CEO Dave Putt VP, Consultant and Client Services
  • 3. A Full Service Business Operating System Solution §  §  §  §  §  §  §  §  §  3 BOSS service slide Your Online Business in the Cloud Complete Corporate Infrastructure Instant F500 Supplier Credentials Expert Support Business Administration Contract Negotiation Liability Coverage Executive-style Benefits Access Valuable Resources We make it easy for self-employed professionals and their clients to work together
  • 4. Webinar Controls The full screen icon" maximizes the" presentation area." The chat box allows you 
 to send a question to the presenter."
  • 5. Live Tweeting Today’s Hashtag: #MBOWeb Submit your Questions/Comments
  • 6. Agenda Affordable Care Act Coverage Options for Independents Tax and Financial Impacts MBO’s Approach to Healthcare for ICs Predictions
  • 7. The Affordable Care Act Defined Goal: To Increase the Number of American’s with a minimum level of health Insurance coverage •  Individual Mandate (effective 1-1-2014) –  Must have health insurance or face a penalty •  Employer Mandate (effective 1-1-2015) –  Provide health insurance to all full-time employees or face a penalty •  Public “Marketplace Exchange” –  Created to find and choose insurance coverage –  Impacts ICs private health insurance and medical HRAs 7
  • 8. Options for Independents to Acquire Insurance Independent consultants can obtain minimally qualifying coverage (the coverage required to avoid an IRS penalty) in a number of ways including: §  The new Health Insurance Marketplace §  Employer-sponsored plans (through a company Looking for coverage? like MBO Partners or through a spouse or parent’s employer) §  Government sponsored plan such as Medicaid §  Individual or Family Health Plan
  • 9. Public Marketplace Insurance Exchange •  Marketplace is intended to be a competitive online insurance shop which provides government-regulated and standardized health insurance plans •  Design is intended to help individuals and businesses compare and chose insurance options ü  States can elect to have their own Marketplaces ü  Broad participation in health insurance is critical; allows expensive medical treatment costs to be spread across a large group instead of just a few ü  Links to all Marketplaces can be found at www.healthcare.gov 9
  • 10. Marketplace Insurance Plans •  Plans are separated into categories based on the % of costs they cover or “actuarial value” •  Categories are Bronze, , Gold, or Platinum Plan Type   Typical Coinsurance   Out- of- Pocket Maximum   Bronze   $5,000   30%   $6,350   Silver   $2,000   20%   $6,350   Gold   $0   20%   $6,350   Platinum   10 Typical Deductible   $0   10%   $6,350   $6,350   $0   $6,350   Catastrophic Up to age 30  
  • 11. Tax Impacts of the ACA for ICs •  Premiums through the Marketplace are after-tax only –  Tax credit for those with household income between 100% and 400% of the poverty line –  Generally, subsidy immaterial once income surpasses $28K •  Private Individual Plan Premiums –  May be deductible but have 7.5% AGI limitation
  • 12. Unintended Consequences and Nuances Affecting ICs •  Decline of Private Insurance Market –  State specific •  Arbitrary Cancellation of Qualifying Plans –  Despite extended deadline •  Spousal Penalty/Carve-out –  Denial of access –  Higher spousal premium •  Tax deductibility of premiums –  Insurance bought on the marketplace vs. privately –  Employer cannot pay pre-tax premium payment on plan bought on the marketplace on behalf of an employee
  • 13. MBO’s Approach to Healthcare •  Provide Group Plan Coverage •  Premiums are Pre-tax •  No Spousal Penalties •  Coupled with HRA up to $10,000 •  Annually review insurance carrier to ensure best rates **MBO Associates are professionals whose primary occupation is an independent consultant.**
  • 14. Additional Benefits MBO Offers •  Retirement Planning •  Business Administration –  Personal business manager and online business center •  Tax Withholdings •  Business Insurances
  • 15. Predictions •  Private Plans will go away if Marketplaces succeed •  Large employer plans are more attractive – more stable •  Continuing court cases on aspects of the ACA for years to come •  ICs will be forced into Marketplace or need large employer plans •  Exchanges will continue to struggle for the next few years •  Government subsidy to Insurers goes away and premiums rise •  Income Taxes will go up to fund the ACA program
  • 16. Additional Information on MBO Partners •  EMAIL us - info@mbopartners.com •  VISIT our website - www.mbopartners.com •  FOLLOW us on Twitter - @mbopartners •  SIGN UP for our monthly newsletter newsletter@mbopartners.com 16