The upcoming California Healthcare Exchange is going to have some great health insurance options for many people, but it won’t be the best option for everyone. Fortunately, you’re not required to purchase a plan from the Exchange; there will be 5 options.
- Healthcare Exchange Plan.
- Insurance through your employer. If the company you work for offers health insurance, this will likely be your best option for coverage because they pay a portion of your monthly premium.
- Private insurance company (Anthem Blue Cross, Healthnet, etc.). They will continue offering plans similar to what they currently offer.
- Be “grandfathered” with your existing insurance plan. If you have a health insurance plan that you started prior to March 23, 2010, you will have the option to keep it and be grandfathered in.
- Go without insurance. You will pay an increasing penalty every year. In 2014 the penalty will be 1% of your taxable income or $90, whichever is greater. In 2015 it goes to $325 or 2%, and 2016 will be $695 or 2.5%.
There are pro’s and con’s to each option. The best thing to do is sit down with a licensed agent or broker who can help you compare the Exchange plans and private health insurance or employer provided plans so you can make an informed decision. Give us a call or email if you’d like to review your options or have any questions.
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Owner of Paul Nelson Insurance, and resident of Santa Cruz and Monterey counties for 30 years.