Kentucky plans to set up a health benefit exchange if the Supreme Court approves the health care law. The exchange will allow individuals and employers to compare coverage and costs, and purchase affordable Kentucky health insurance online.
Kentucky will set up a health benefit exchange if the Supreme Court
approves the health care law. The idea of the exchange is to allow
individuals and small businesses to compare coverage, provider networks
and costs and purchase affordable Kentucky health insurance online. The
law requires all states to have their health exchanges up and running by
January 2014, failing which the federal government will step in to set
them up.
Gov. Steve Beshear said that though no one is sure
about what the Supreme Court will decide, Kentucky is ready to follow
the law, if upheld.
The exchange will serve many purposes:
allow the purchase and sale of Kentucky individual health insurance plans
assist small businesses in purchasing health coverage for their employees
help small businesses qualify for tax benefits
allow individuals to enroll in health plans, Medicaid and KCHIP, and get tax credits and subsidies for premiums
allow individuals without employer sponsored coverage to directly purchase plans of their choice
According
to State officials, the governors decision has the support of several
groups representing health care agencies, advocates and employers,
including the Kentucky Hospital Association, the Kentucky Chamber of
Commerce, and leading Kentucky health insurance companies such as Anthem
Blue Cross Blue Shield.
Neither the governor not these groups
support the idea of a federal-run exchange. Bryan Sunderland, vice
president of public affairs for the Chamber believes that there should
be some sort of local control, but that the state should have the
freedom to chart its own course in health care reform.
Chamber officials also said the health insurance Kentucky
exchange, if set up, should operate as an open marketplace that
supplements, rather than supplants, the existing insurance market.
It
must be noted that the Chamber has serious concerns about the health
care laws impact on business. These concerns are brought about the
provisions of the law. For instance, if employers with more than 50
workers do not provide their workers with coverage, and if the workers
who qualify for health insurance subsidies buy their plan through a
health exchange, the employer would be subject to a “free rider” penalty
of $2,000 to $3,000 per employee.
However, the law also holds benefits for small businesses:
Employers with less than 50 full-time workers can purchase employee
coverage at a more affordable cost in the health exchange
Businesses with fewer than 25 workers who earn an annual average wage of
less than $50,000, are eligible for a tax credit if they help their
employees purchase coverage
The U.S. Supreme Court is expected to deliver its ruling on the constitutionality of the federal act in late June.
While
Kentucky residents and businesses can shop for coverage directly at the
health benefit exchange, they cannot do with professional guidance.
Obamacare envisions an important role for health insurance brokers. Only
educated
, experienced and licensed Kentucky health insurance brokers can provide employers and individuals with the information and unbiased guidance they need to make informed decisions.
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