5 Things to Know About the Marketplace and Affordable Care Act

Michigan's Health Insurance Marketplace, the online component of the Patient Protection and Affordable Health Care Act, officially opens on Oct. 1.

With only seven days to go, there is still plenty of confusion on how the marketplace works and who must sign up for health insurance.

Here's a look at five things you should know:

1. What is the marketplace?

In today's digital age, you wouldn't purchase an airfare ticket without comparing the best prices would you? The same concept applies to the marketplace, which serves as a central location for residents and small businesses to compare plans and buy insurance.

It will be available online at healthcare.gov starting Oct. 1 and will offer coverage starting as soon as Jan. 1, 2014. Open enrollment ends March 31, 2014.

2. I already have insurance through an employer. Do I still need to register on the marketplace?

No. If you have job-based health insurance you like, you can keep it. You're considered covered. You may be able to change to Marketplace coverage if you want to.

Any job-based health plan you currently have qualifies as minimum essential coverage. You don't need to change to a marketplace plan in order to avoid the fee that uninsured people may have to pay for 2014.

3. What if I'm losing job-based insurance?

If you lose your job and with it your job-based health insurance coverage, you may buy an individual plan through the marketplace. You may also have the option of keeping your health insurance for a limited time through a program called COBRA continuation coverage. For information, visit http://www.healthcare.gov.

4. What will it cost me?

Plans are divided into four categories: bronze, silver, gold and platinum. The platinum plan has the highest monthly premium, while the bronze plan has the lowest premiums. With the platinum plan, your out-of-pocket copays are lower, or roughly 10 percent on average. With the bronze plan, your monthly costs may be lower, but your out-of-pocket costs are higher, about 40 percent.

The prices for plans on Michigan's health exchange won't become public until Oct. 1.

5. What is considered a small business?

If you have 50 or fewer full-time equivalent (FTE) employees you're considered a small business under the health care law.

Small businesses can get employee insurance through the SHOP Marketplace. The program allows business owners to control the coverage they offer and how much they pay toward employee premiums.

Small businesses may qualify for a small business health care tax credit worth up to 50 percent of the premium costs. Businesses can still deduct from taxes the rest of the premium costs not covered by the tax credit. Beginning in 2014, the tax credit is available only for plans purchased through SHOP.

Editor's note: The information in this story was provided by https://www.healthcare.gov.