3. A Full Service
Business Operating
System Solution
§
§
§
§
§
§
§
§
§
3
BOSS service slide
Your Online Business in the Cloud
Complete Corporate Infrastructure
Instant F500 Supplier Credentials
Expert Support
Business Administration
Contract Negotiation
Liability Coverage
Executive-style Benefits
Access Valuable Resources
We make it easy for self-employed
professionals and their clients to
work together
4. Webinar Controls
The full screen icon"
maximizes the"
presentation area."
The chat box allows you
to send a question to the
presenter."
7. The Affordable Care Act Defined
Goal:
To Increase the Number of American’s with a minimum level of
health Insurance coverage
• Individual Mandate (effective 1-1-2014)
– Must have health insurance or face a penalty
• Employer Mandate (effective 1-1-2015)
– Provide health insurance to all full-time employees or face a penalty
• Public “Marketplace Exchange”
– Created to find and choose insurance coverage
– Impacts ICs private health insurance and medical HRAs
7
8. Options for Independents to Acquire Insurance
Independent consultants can obtain minimally qualifying
coverage (the coverage required to avoid an IRS penalty)
in a number of ways including:
§ The new Health Insurance Marketplace
§ Employer-sponsored plans (through a company
Looking for coverage?
like MBO Partners or through a spouse or
parent’s employer)
§ Government sponsored plan such as Medicaid
§ Individual or Family Health Plan
9. Public Marketplace Insurance Exchange
• Marketplace is intended to be a competitive online insurance shop which
provides government-regulated and standardized health insurance plans
• Design is intended to help individuals and businesses compare and chose
insurance options
ü States can elect to have their own Marketplaces
ü Broad participation in health insurance is critical; allows expensive
medical treatment costs to be spread across a large group instead
of just a few
ü Links to all Marketplaces can be found at www.healthcare.gov
9
10. Marketplace Insurance Plans
• Plans are separated into categories based on the % of costs they
cover or “actuarial value”
• Categories are Bronze,
, Gold, or Platinum
Plan Type
Typical
Coinsurance
Out- of- Pocket
Maximum
Bronze
$5,000
30%
$6,350
Silver
$2,000
20%
$6,350
Gold
$0
20%
$6,350
Platinum
10
Typical
Deductible
$0
10%
$6,350
$6,350
$0
$6,350
Catastrophic
Up to age 30
11. Tax Impacts of the ACA for ICs
• Premiums through the Marketplace are after-tax only
– Tax credit for those with household income between 100% and
400% of the poverty line
– Generally, subsidy immaterial once income surpasses $28K
• Private Individual Plan Premiums
– May be deductible but have 7.5% AGI limitation
12. Unintended Consequences and
Nuances Affecting ICs
• Decline of Private Insurance Market
– State specific
• Arbitrary Cancellation of Qualifying Plans
– Despite extended deadline
• Spousal Penalty/Carve-out
– Denial of access
– Higher spousal premium
• Tax deductibility of premiums
– Insurance bought on the marketplace vs. privately
– Employer cannot pay pre-tax premium payment on plan bought on
the marketplace on behalf of an employee
13. MBO’s Approach to Healthcare
• Provide Group Plan Coverage
• Premiums are Pre-tax
• No Spousal Penalties
• Coupled with HRA up to $10,000
• Annually review insurance carrier to
ensure best rates
**MBO Associates are professionals whose primary
occupation is an independent consultant.**
14. Additional Benefits MBO Offers
• Retirement Planning
• Business Administration
– Personal business manager and online business center
• Tax Withholdings
• Business Insurances
15. Predictions
• Private Plans will go away if Marketplaces succeed
• Large employer plans are more attractive – more stable
• Continuing court cases on aspects of the ACA for years to come
• ICs will be forced into Marketplace or need large employer plans
• Exchanges will continue to struggle for the next few years
• Government subsidy to Insurers goes away and premiums rise
• Income Taxes will go up to fund the ACA program
16. Additional Information on MBO Partners
• EMAIL us - info@mbopartners.com
• VISIT our website - www.mbopartners.com
• FOLLOW us on Twitter - @mbopartners
• SIGN UP for our monthly newsletter newsletter@mbopartners.com
16
