Days after delaying health insurance requirements for employers, the Obama administration has decided to roll back requirements for new state online insurance marketplaces to verify the income and health coverage status of people who apply for subsidized coverage.
The Patient Protection And Affordable Care Act (PPACA); healthcare reform law is scheduled to begin offering health coverage through state marketplaces, or exchanges, beginning Oct. 1 of 2013 for January 1, 2014 coverage effective dates. In order to receive tax subsidies to help pay insurance premiums, enrollees must have incomes ranging from 100 percent to 400 percent of the federal poverty line and not have access to affordable insurance through an employer.
Regulations released on Friday, July 5th, by the Department of Health and Human Services (HHS) give 16 states and the District of Columbia, which are setting up their own exchanges, until 2015 to begin random sampling of enrollees’ employer-based insurance status. The rules also allow only random – rather than comprehensive – checks on income eligibility in 2014.
What does this mean for you? In the 34 states with a Federal Facilitated Exchange (FFE) – Such as North Carolina & South Carolina – this change should not impact you. In the 16 states that are running their own exchange, it is expected that this will make the transition into subsidy based plans and marketplaces easier for the 2014 enrollment season.