5 THINGS YOU NEED TO KNOW ABOUT AFFORDABLE HEALTH CARE
1 . Health Care Reform Provides Affordable Insurance to the Uninsured. The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace runs from Oct. 1, 2013, through March 31, 2014.
2. Health Care Reform Provides Expanded Coverage
- Ability for young adults to stay on parents’ plan until 26.
- Individuals with pre-existing conditions cannot be denied coverage
- Medicaid will not be offered to individuals under age 65 with income less than about $15,302 ($31,155 for a family of four.)
3. You may be eligible for a Government Subsidy.
- Uninsured individuals who purchase health insurance through the Marketplace or exchange and have income no greater than about $94,200 for a family of four, may be eligible for a government subsidy to help pay for health insurance.
- The subsidy will be in the form a a tax credit.
- The credit or subsidy will be applied to your insurance premium when you purchase in 2014.
4. You May Receive a Penalty if Not Insured by March 31, 2014.
- If you are required to purchase health insurance and have not done so by March 31, 2014, you will receive a penalty.
- The tax penalty will be on your 2014 tax return filed in 2015.
- The penalty in 2014 is $95 per adult, 447.50 per child, capped at $285 or 1 percent of household income depending on income, whichever is greater.
- Each year the penalty increases.
- By 2016, it rises to $695 per adult, $347.50 per child, capped at $2,085 or 2.5 percent of household income, whichever is greater.
- There is no penalty for a gap in coverage less than three months.
5. You May Be Exempt from the Health Care Reform Law.
You may not be required to purchase insurance and will not see any changes in 2015 on your 2014 tax return with regard to the purchase of insurance if:
- You already have health insurance through your employer, Medicare, Medicaid, or purchased on your own.
- You have income below the IRS tax-filing threshold ($9,750 if you are single).
- You have financial hardship.
- The lowest cost plan option exceeds 8% of your income.