Life, Health & Benefits Professionals   Supreme Court upholds Obamacare individual mandate as a tax 

The Supreme Court today has decided to uphold the individual mandate, which requires people to buy health insurance or face a fine starting in 2014, in the Affordable Care Act (also known as Obamacare). Though this fine was declared to be unconstitutional under the Interstate Commerce Commission it was changed to a tax that would be paid to the IRS. By making this fine a tax it is now considered to be constitutional. This means that by 2014 most Americans will be required to buy health insurance or pay a penalty of 1% of their income to the IRS.

Starting in 2014 the states will have to set up their own health insurance exchanges, and Medicaid will be expanded by 16 million low-income people. Also insurers will no longer be able to turn away people with preexisting conditions, or charge people higher premiums based on their gender or health, they will also no longer be able to turn away children with preexisting conditions.

How is this going to effect your business and how you qualify your clients?

There has been alll kinds of discussion for the last few weeks on the outcome of the Supreme Court's decision. Although "OBAMACARE" was upheld, it was a 5-4 split decision. The experts will read the Court's decision and provide more details for all of us. This may be an oportunity for agent's to better prepare and offer products, services and benefits to their existing and new clients. The role of the agent is not clearly defined in the process yet. Guidleines and regulations will be forthcoming in addition to the "exchanges" and products and standards that will be set forth. I suggest we talk with the companies, general agencies and NAHU for more details. Several webinars are scheduled from a variety of experts for next week.

My best quess is when the exchanges take effect we will have no time to prepare for the changes that will occur. Just as when obamacare changed our commissions from Dec 31st - Jan 1st it was overnight. No time to make adjustments, or prepare.