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NetCPA's is a CPA firm concentrated on Xero based out of Breckenridge. Terry Power, CPA, is the principal. Terry focuses exclusively on providing Xero-based accounting solutions for small businesses.

He currently has Xero clients in Denver, Summit and Eagle Counties, with plans to expand to anywhere in the US a client needs Xero.    

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Oct 23

How to Avoid Obama "Care"

Posted by Terrence Power, CPA at Thursday, October 23, 2014

If you, like me, are lucky enough to live in the mountain communities of Colorado you know very well that we have the highest health insurance premiums in the United States.  This is supposedly on account of a lack of competition between hospitals in our communities.  It makes no difference that we can drive to the front range in about an hour and have access to thousands of healthcare professionals.  It makes no difference that we are probably the healthiest, and thinnest, Americans in the United States.  We're getting the shaft.  

There is a way to get affordable health insurance and avoid Obamacare.  Some people call this an "unintended consequence" of the Affordable Care Act (ACA).  It's called "Short-Term" health insurance (STHI).  STHI is available in Colorado for terms of up to 6 months.  The premiums are drastically lower.  For example, my gross Obamacare premium is over $1,400 per month.  I refuse, on principal, to pay that much.  I value my freedom of choice and I don't like being ripped off.  I purchased a STHI policy through esurance with a $2,500 deductible for around $230 a month, a savings of almost $1,200 per month, or $14,000 per year.  Why would anyone spend more on health insurance premiums than their health care actually costs?  That defies the underlying premise of what insurance is.  And who can honestly even afford to pay that much?

STHI is not considered qualifying insurance under the ACA, so there will be a penalty when your taxes for 2014 are filed (they have to get us somehow). However, the penalty is small, usually a few hundred dollars, and barely impacts the savings STHI provides.  STHI also does not have to follow ACA's rules and regulations so there will be pre-existing condition clauses. Try to think of STHI as the way health insurance was before Obamacare.  

In Colorado, under present law, STHI policies are only good for 6 months.  After the 6 months is up, or open enrollment begins, you can enroll in Obamacare (?) or just get another STHI policy.  That's right, you can buy STHI policies ad infinitum and avoid Obamacare completely!  Several states are already allowing STHI policies of up to 11 months.  I would expect Colorado to follow suit.

For excellent information on health care and the ACA visit the Kaiser Family Foundation website at kff.org.  

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