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Obamacare Delays Effect Small Number

il-4A number of provisions in the Obamacare health care program will be delayed, but only a small number of U.S. consumers will be effected by the delays.  The three aspects of Obamacare that will have the most impact, however, have not been delayed.

The tax penalty for individuals that do not have health insurance will go into effect on time. The penalty will start in January 2014 and it will affect most Americans. Health insurance exchanges are ready to go into operation in 27 states so far in October, and are likely to be delayed in some states. Tax credits that are supposed to help people buy health insurance through the exchanges will become effective in January, but won’t be felt until federal tax returns are filed the following year.

This means that by federal law you will have to have health insurance next year and that the exchanges will be available to help you purchase it.

Need Health Insurance? Get Great Rates Fast and Easy. Delayed Obamacare Provisions

Most of the Obamacare provisions that have been delayed affect business or insurance companies. Those measures that have been delayed include:

  • The requirement that companies that employ more than 50 people on a full time basis offer health insurance. The Obama administration made the delay under pressure from employers. Companies can apply for exceptions to the mandate, and some major employers including McDonalds already have been approved for exclusions. Other employers are cutting workers back to part time or laying individuals off to avoid the requirement.
  • A provision that allows some health plans to maintain separate out of pocket limits. That will only affect persons in some health plans and will delay caps on some out of pocket expenses. Other cuts in Medicare that were included in Obamacare were delayed.
  • The verification system for the health insurance exchanges. It may operate on an honors system for a while until a new computerized verification system is set up. This should not affect most consumers applying for insurance through the exchanges.

Obamacare and College Students

Obamacare may raise the cost of insurance for some college students. Some colleges will increase the price of low cost health insurance offered to students because of restrictions imposed by Obamacare.

That’s the bad news, the good news is that most of those students will qualify for the for the Obamacare tax credit. Since most college students make less than $20,000 a year they should have no problem qualifying for the credit. Other students might be able to stay on their parents’ insurance. Although for many families it will be cheaper to purchase directly in the student’s name.

It should also be noted that the policies offered through the exchanges should offer better coverage than the basic college policies. Students could get such benefits as prescription drug coverage through the exchange plans.