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The Affordable Care Act, also known as the ACA and Obamacare, included a provision that taxed most Americans who didn’t buy and keep in place a specific type of health insurance. The reasoning behind the tax was the expectation that if EVERYONE were insured, rates would go down.
Not everyone agreed with this perspective and litigation was filed against the federal government. The Supreme Court ruling a few years later declared the Individual Mandate, the provision requiring the tax, constitutional because Congress has the power to impose taxes on Americans.
Unfortunately, everyone didn’t buy insurance after the ACA and its tax penalty became law, and the rates didn’t go down, either. In fact, in many cases they went up. And kept going up. The ACA was revised in 2017 and the tax penalty was reduced to zero effective 2019.
This was good news to all the people who chose not to buy insurance, but opponents of the ACA filed more litigation to have the entire law declared unconstitutional. The end result of that legislation brought about a ruling by the Fifth Circuit Court of Appeals last December. The Court ruled that if the Individual Mandate no longer contained a tax, it was unconstitutional. Essentially, if a tax is $0, it can’t be billed, collected, or enforced–so it isn’t real. Sort of like the tree falling in the woods and no one hearing it.
Anyway, what this means is that your clients who didn’t have health insurance last year, won’t be paying a tax penalty when they file they federal income tax returns ins April. However, if they live in one of the six U.S. jurisdictions that has its own Individual Mandate at the state level, they might still be taxed on their state returns if they didn’t have state-mandated coverage. Those 6 jurisdicitons are California, the District of Columbia, Massachusetts, New Jersey, Rhode Island, and Vermont.
Right now, opponents of the ACA who want the entire law declared unconstitutional are in the process of reviewing all the ACA’s provisions before bringing their case back to the District Court. It’s expected that the District Court will take some time considering and will eventually strike that down.
The insurance industry is an “essential” business during the coronavirus pandemic and all the related upheaval social distancing and self-quarantining has created. Those of us who are fortunate enough to be able to continue working in the industry are finding as many ways as possible to help those who can’t work, or who can only work limited hours, and are suffering financially.
Please check with your insurance agents and insurance companies to see what assistance is being made available to you. Here are 3 types of help you should be able to obtain immediately with respect to your current insurance policies. In many cases, these actions are MANDATED by federal or state law.
Health insurance companies are waiving patient cost-sharing in the forms of deductibles, co-payments, and coinsurance
Insurance carriers have suspended the issuance of cancellations for failure to pay premiums when due–for a certain time period (i.e., until May 1)
Some insurance carriers are allowing people to extend the due date of premiums due on renewal policies for a certain time IF they call the carrier at a designated phone number to make arrangements
Each insurance company will be responding differently based on a number of factors, so call your agent or insurer to find out what type of assistance is being offered. The National Association of Insurance Commissioners has created a Coronavirus Recourse Center on its website, which can be found here.
Many insurance companies, agencies, and other professionals are publishing and broadcasting all kinds of information to help but take care to be sure you’re listening to a reputable source. As we often see on social media, some individuals thriving on exploiting others.
Feel free to reach out to me with any questions you might have about, and I’ll get you an answer.
Nine years ago, I took the plunge and began a freelance writing business working from home. And when I say “plunge,” I don’t do so lightly. When you’ve spent 37 years working in sales, and owning three businesses, and teaching agents and adjusters insurance continuing education classes, that tumble is more like a nosedive.
In all honesty, I must disclose that I’m an introvert. Yes, I’m loud and shine in group settings. But I’d prefer to be in small groups or, better yet, by myself. Still, making the adjustment from talking to 50 or more people each day to only holding regular conversations with my dog and cat took an adjustment.
I’m sure I made 95% of the mistakes one can make when working from home–which is why I know what the three biggest ones are, and what you can to do avoid them.
My sister will back me up on this. Although she works in healthcare billing, and is an “essential” employee, she’s juggling working from home with spending a couple of days a week at the office due to the coronavirus shelter in place requirements of the state she lives in. At the end of her first day working from home–ever, she actually called me and volunteered that she was glad she’d followed some (not all) of the tips I’d shared. So, let me share the three she appreciated most.
No-No #1: Not having a dedicated office or work area. A business associate, like my sister, is learning all about this. During our telephone conference the other day, she was sitting in her bedroom closet with the door closed while I was at the desk in my office
I understand most of you don’t have an extra room sitting around. I wouldn’t, either, if I hadn’t planned my living space around my job. But before I could afford to do that, I placed a desk with my PC next to a small bookcase in a corner of my living room and that was my “office.”
Whenever I worked, that’s where I sat. That’s where my supplies were, and no one else could use the space. (Except the cat. And that’s only because he doesn’t listen.) I don’t watch television, so I wasn’t tempted to turn on the nonexistent device. But I sure was tempted to look at the activities going on outdoors, and the clouds floating by in the sky, and anything else that caught my eye.
Concentrating is difficult, especially when there are so many more interesting things to do than work. Having a dedicated work location is the best way to minimize distractions.
No-No #2: Not establishing “work” hours. When we begin working from home, we view the burgeoning day as we sip our coffee or tea. We see the enormous expanse of time and visualize all the things we’re going to get done … after we toss a load of laundry into the washer … or take a walk with Fido … or finish the last chapter of that great book we’re reading.
Problem is, by the time we finish doing all three of those things, and then hop in the shower, it’s noon. And half our day is shot. Stick to your office schedule at home. If you absolutely MUST run outside to meet the mailman, or romp with Rover in the back yard, schedule those activities as you would your break time at the “real” office. Work is work. You can still do it the same way, at the same time, regardless of where you are.
No-No #3: Staying in your PJs. More so now than when I started working from home, technology makes things easier and more difficult, all at the same time. Having work laptops that travel with us, and remote access to our servers at the office, truly does allow us to perform the same tasks regardless of where we are. However, when your boss says you need to be available for video chats, she means it.
Not wearing makeup is one thing. Wearing your college sweatshirt with the shredded, distended neckline is entirely something else. I no longer wear suits to work these days, and I definitely don’t wear makeup unless I know for sure I’ll be video chatting that day. I wear jeans in the winter and shorts in the summer. I wear slippers or go barefoot. But I always wear a nice blouse or top, along with earrings and a little jewelry.
If I weren’t dressed, I wouldn’t feel as if my day had truly begun. I’d be too relaxed, not ready to jump into action. When I work, I want to be prepared for anything that happens–which is tough to do if I’m wearing old white socks, red plaid flannels, an orange t-shirt, and a black sweatshirt.
To get back to my sister and wrap this up. When she called me that night after her first day from working at home, she said the best thing she could have done was get up, have her coffee, shower, dress and head for work the same way she always does. She got a kick out of having a commute that lasted four steps instead of twenty minutes driving through traffic, but said going through the same motions put her head in the right place. She declared her dining room the “office,” which worked well. But she did keep the television on low in the living room. Unlike me, she’s not real fond of being alone in absolute silence.
What No-Nos have you fallen prey to, and how do you avoid them?
The Taking the Mystery out of Insurance podcast is now live! The Welcome episode aired on March 22nd and the official first episode will air on April 21st. Between now and then I’ll be broadcasting trailer episodes to announce upcoming episodes.
On the podcast, my guests and I take the subject of insurance and break it down into simple language, sharing concepts that help insurance professionals and their clients avoid the pitfalls of confusion and misunderstanding. Each episode will include a Q&A section, were I answer insurance-related questions submitted by listeners.
You’ll be able to find the podcast on YouTube, Apple, Castos, Pocket Casts, Stitcher, Spotify, and Google Play.
Click here to send your feedback about the podcast, to suggest future topics, or to submit a Q&A request.
Thanks to all of you who submitted votes for your preferred version of the new book cover for Taking the Mystery out of Business. I received lots of input, and truly appreciate it.
As you can see, the blue cover was the favorite, followed by the green cover.
Stay tuned for the book’s release date. April is coming soon…
Cover by Shawn Jewett. Feel free to reach out to me if you’re interested in him doing any artwork for you!
