What ObamaCare means for rural Colorado
Whether by design or coincidence, rural residents can expect to take it in the pocketbook as the Patient Protection and Affordable Care Act (aka “ObamaCare”) takes effect over the next 15 months.
Insurance exchanges, for those wanting to buy insurance, open on October 1 of this year. In 2014, everyone is required to buy “qualified” insurance coverage or pay a penalty to the IRS.
However, the new law’s impact on for people in rural areas isn’t the same as for those in urban areas.
According to the Robert Wood Johnson Foundation, rural residents are more likely to purchase their own coverage through the individual market or to be covered by employers with less than 50 employees.
Individuals under 35 are now experiencing premium increases of 40% and higher. Others are finding that insurance plans they’ve used for years are being discontinued because politicians and bureaucrats have deemed them inadequate.
Rural residents are also more likely to be covered by PPO plans because HMOs are seldom offered in rural areas. Under ObamaCare’s health insurance tax (or “HIT” tax), PPOs pay double the tax charged to HMOs and self-funded plans aren’t taxed at all. (more…)