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Dear valued client:

Thank you for the privilege of serving your health insurance needs. As you are probably aware, health insurance will change dramatically in 2014.

Healthcare reform and the Patient Protection and Affordable Care Act of 2010 (PPACA) will impact all of us. Whether you refer to it as “Obamacare” or the “Affordable Care Act” probably depends upon your political affiliation or how it will affect you. You’ve heard a lot of different reports in the media, but 80% of what the media tells you is not true. The purpose of this email is to give you an easy to understand summary of how the Act will affect you and to give you the basics of plotting a strategy to minimize the cost of health insurance in 2014. All of this will be done with no political leaning.

As with most Acts, there will be those that will be helped and those that will be hurt by PPACA. There will be two courses of action depending upon which category you fall in:

Lock in 2013 pricing as far into 2014 as possible to minimize the financial impact of PPACA.

Enroll in a plan that takes effect Jan 1, 2014 or thereafter to take advantage of the benefits of PPACA.

This will explain how I can help you determine which strategy will best suit your needs.

First of all, there will no longer be any medical underwriting in plans issued Jan 1, 2014 and thereafter. Medical issues will not prevent you from getting health insurance nor affect the price. So for those that had to accept a rate increase to obtain insurance you will probably want to take option 2. For those who could only get insurance with a HIPPA plan (also known as a Portability Plan) or a Conversion plan, you definitely will want to take option 2.

For those wanting maternity coverage or are already pregnant and don’t have maternity coverage, you definitely want Option 2 since maternity is included in all plans. There is no difference in pricing due to gender, so essentially men will have maternity coverage too.

For those individuals/families whose anticipated 2014 Modified Adjusted Gross Income will be less than 400% of Federal Poverty Level (FPL) you most likely want to take Option 2. In fact, the less money you make, the more attractive Option 2 will be for you. To see how much 400% is for your family click on this link, http://wavrock.com/healthcare-plans/individual-family-health-insurance/

For individuals/families making more than 400% of FPL, you most likely want to take option 1 since the anticipated cost of health insurance will increase by 20-70%!

Tobacco users may want to take option 1 since there will be a 50% rate up on tobacco users.

For those taking option 1, most insurance providers are giving an option to lock in 2013 prices well into 2014 by taking an “off cycle renewal”. You should receive a letter from your insurer soon explaining this option. Humana is using Dec 31 as this off-cycle renewal date so you can take advantage of 2013 pricing all through 2014. Most other insurance companies are using Dec 1 or Dec 15 as their off cycle renewal date.

What is your next step? Click on the link below to take you to your options. If unsure of what is the best choice for you, please contact me. If your employer offers health insurance, your options can be significantly different. Contact me to explain how your employers’ group plan can affect you and your family.

Thank you!

Paul Wavrock
About the Author
Paul Wavrock is the founder of Heath Insurance of Florida, a full service Health Insurance brokerage firm, that utilizes several major National and local Insurance providers to assist its clients and their insurance needs.