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DOLLARS AND SENSE / Health Care Reform Q&A


Health Care Reform


effect in 2014. Marcus Newman, vice president of GCG Financial, Inc., weighed in on some of the effects the law could have on a typical veterinary practice.


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I have heard that because my Animal Hospital employs fewer than 50 full-time employees, the new health care law does not apply to us. Is that true or false? Answer: The new health care law, The


Affordable Care Act (ACA), actually applies to all of us. However, the “employer man- date,” which requires larger businesses to offer a group health insurance plan to employees, only applies to the larger groups with more than 50 employees. That being said, this law changes the


nature of health insurance for everyone and applies to all American citizens. The law will change the way health insur- ance is bought and sold. Importantly, the law requires that every American citizen acquire health insurance or face a tax penalty. In order to achieve this daunt- ing requirement, health insurance will be offered on a guaranteed issue basis, without medical underwriting and at pre- published pricing (community-rated) to anyone who applies for it. Smaller com- panies with fewer than 50 employees will have new options regarding how they treat the health insurance needs of their employees, if they choose to address them at all.


Trends magazine, May 2013


everal important provisions of the Patient Protection and Affordable Care Act, (aka Obamacare or the Affordable Care Act) come into


and Your Practice 3 important questions about the Affordable Care Act


I have heard that the government will offer subsidies to lower-income families in order to help them buy health insurance. How will that affect the employees of the typical animal hospital? Answer: While detailed information


regarding the proposed subsidies is still pending, the ACA law does suggest that any family living at or below four times the federal poverty level will be eligible for financial premium assistance. There is language that suggests these families will be able to buy their insurance and not be asked to pay more than 9.5% of their household income—the remainder of the cost will be subsidized. This assistance is only available to folks who are not offered health insurance from their employer (at a cost less than 9.5% of household income) and to those who purchase their health insurance through a “public exchange.” We believe that because most animal


hospitals employ fewer than 50 people, and because the pay scale at the typical animal hospital is moderate, that this provision of the law will affect a great number of your industry’s employees. As regulations for the public exchange become finalized, we expect that there will be further clarification of the rules surrounding the subsidy program. Stay tuned for further developments.


I have heard that this new law was taxing health insurance in ways it has not been taxed before. I have not been able to find explanations of this tax—how does it work? Answer: There are three ways in which health insurance will be taxed starting in


Smaller


companies will have new options


regarding how they treat the health insurance needs of their employees, if they choose to address them at all.


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