What If You Lose Health Insurance After March 31?

GroupUntil March 31, 2014 Americans are allowed to enroll in an Obamacare approved health insurance plan.  However, after that date, Americans are not able to enroll in an Obamacare approved health insurance plan unless they lose health insurance for no reason of their own.

(If you are one of the Americans who elect not to purchase approved health insurance and pay the Obamacare penalty, you will still be able to buy health insurance, if you qualify.  Just know that it will not be Obamacare approved.)

I remember that when I was a rookie insurance agent, congress was considering passing laws that would significantly damage the sale of Universal Life insurance.  At that time I was told, “Relax, never has any politician created a law that someone with sense cannot get around.”

That was back in 1988.  Few of the politicians who created the 7-Pay test are still in power but most Life insurance companies still sell Universal Life insurance.

I don’t share that because I am a fan of Universal Life insurance.  In my opinion, there are other ways, to accomplish the same goals as Universal Life, but without the same level of risk.

My point, in sharing that anecdote, is that while congress and the President may have created their complex mandates for health insurance, many in the American population are going to look to find ways to limit their risk.

The lousy job the White House did with implementing the federal health insurance exchange made news.  However, the only ones who were really affected were those Americans who are responsible to buy their own health insurance policies.  That is less than 25% of the American population under the age of 65.

If the same thing happens this year, it will make the chaos of 2013 look tame.  Not only are all Americans subject to the Individual Mandate, that all Americans have government approved health insurance or pay a penalty, the Employer Mandate starts in 2015.

The Employer Mandate requires all companies with more than 50 employees, working a minimum of 30 hours a week, to pay at least half of the cost of health insurance for all employees or pay a premium.

Many believe that the reaction that employers will have to the new mandate is to eliminate full-time jobs.  Already, I am reading of large, national employers cutting benefits to part-time employees as they prepare for Obamacare in 2015.

You do have an option if your employer cancels your group health insurance plan after March 31.  Just remember that your option is only good for 63 days.  If you do not exercise your SEP (Special Election Period) in a timely manner, you will not be able to get approved health insurance until the next Annual Election Period (AEP) and may be subject to the “Shared Responsibility Payment” for the rest of the year.

I am afraid that the ruckus over Obamacare is not over.  In fact, I’m afraid that it has only just begun.