Requirements for Individuals under Health Reform
As of 2014, federal health reform brought new requirements to health insurance. One of the biggest changes included a requirement that all Americans contribute to the cost of health care. Health Reform, also known as the Affordable Care Act... ...has an Individual Responsibility Requirement that requires every member of your Household to have Minimum Essential Coverage whether you get it through your employer, on the Health Insurance... ...Marketplace, through private major medical health insurance purchased from a health insurance company off the marketplace, or a form of coverage provided by the government. If you choose not to carry insurance, you have two options. Apply for - and receive - an exemption, or make an individual responsibility payment when you file your federal income tax return. Often referred to as a tax penalty. Each of these options applies to everyone in your household.
So if your children and other dependents aren’t insured, you could end up paying a penalty for each dependent every year. The plans you’ll find on the Health Insurance Marketplace will eliminate the penalty. If you don’t have health insurance and don’t want to pay the individual responsibility payment, you may qualify for an exception, this is called an exemption. The exemptions include... ...Belonging to a religious sect that’s recognized as conscientiously opposed to accepting insurance benefits, belonging to a federally recognized Indian tribe, if your premiums are over 8% of your yearly household income...not being lawfully present in the United States, having an income below the income tax filing requirement... ...the months one is a member of a health care sharing ministry, the months one went without insurance for less than three consecutive months, those months spent in jail or prison, any months that a hardship would keep you from obtaining coverage. Exemption forms are available online at the Health Insurance Marketplace and/or the IRS.
Without exemptions or insurance, you’ll have an individual responsibility payment to pay each year. The payment will be either a set percentage of your income... ... or a flat fee that is charged per member of a family... ...up to a total of $285 for your 2014 taxes.
You will be charged whichever amount is higher. Remember that ... the amount of the payment increases every year for both the percentage and the flat fee. And if you had Minimum Essential Coverage for at least one day during a month... ...that entire month is considered fully covered. One more thing: Your annual individual responsibility payment does not give you coverage. To stop making individual responsibility payments, you must either enroll in a minimum essential health coverage plan or receive an exemption from paying.
0 comments:
Post a Comment