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Health Care Exchanges Start on October 1, 2013, in Colorado and Around The Nation

Health Care Exchanges Start on October 1, 2013, in Colorado and Around The Nation

On October 1, 2013, health care exchanges officially started in Colorado. Connect for Health Colorado, as its marketplace is being called in Colorado, has been in the planning stages for two years. Health care exchanges are in place for the un-insured or under-insured. People who have previously struggled to get insurance because of a pre-existing condition or because of financial restraints can now get coverage by a number of leading health care companies. Open enrollment starts on October 1, 2013, but coverage won’t start until January 1, 2014. The main benefit of the health care exchange is the ability to easily compare plans from multiple health care companies without being denied coverage, and there is now the ability to choose and pick the plan that is right for you. Colorado, as with every other state, has people called navigators who help guide consumers through the process in an unbiased way.

Many people who use the Connect for Health Colorado exchange will qualify for tax credits to help buy insurance through the exchange. In this case the government will send money directly to your insurer. The person who qualified for the tax credit will then work with their insurer to pay any remaining premium on an annual basis. Those that are poor and near-poor will be steered to Medicaid depending on the states that agree to expand that program. Those who do not have coverage either through their own, their employer or through an exchange will have to pay a fine of $95 or 1% of your income for the first year. Each year that penalty will increase. For example, by 2016 the annual penalty will be $695 or 2.5% of income.

The new health care exchange was established because of the new Health Care Reform Act passed in 2011. It gives individuals and families insurance coverage for those that may not be able to afford traditional insurance coverage. It also gives those with a pre-existing condition another option in health care coverage.

How to use this Information

Health care exchanges will have an immediate impact starting October 1, 2013. Our Colorado CPAs at KKB will help answer any questions you may have on the new Connect for Health Colorado exchange, including advice on financial planning, wealth management and other tax services. We’ll take care of all the questions you have so you can start enjoying your life! Inviting Feedback, Comments and Interactions What questions, concerns or feedback do you have regarding the new health care exchange in Colorado?

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