Tag Archives: open enrollment period

Your Guide To The Tax Penalties Of The Affordable Care Act

If you have not yet secured health insurance for 2015, do not wait. The open enrollment period (the time during which you can secure an individual health insurance plan) ends on February 15th, and if you do not have the coverage required by the Affordable Care Act (ACA) by that time you may be subject to tax penalties.

What kind of coverage should you have to avoid those fees? You need a major medical health insurance plan. According to the ACA, these plans include coverage for emergency services, pediatric services, laboratory services, rehabilitative services and devices, mental health/substance abuse services, preventative/wellness services, hospitalization, maternity and newborn care, ambulatory patient services, and prescription drugs.

If you do not have major medical health insurance for three continuous months, you will be hit with penalties when you file your taxes. These penalties will be 2 percent of your taxable income or $325 per adult ($162.50 per child), whichever is greater.

Are you concerned you will not be able to afford the insurance you need to avoid these fees? Do not worry- the ACA also outlines subsidies to help lower income individuals and families get coverage. If your household income is 400 percent or less of the federal poverty level, you can qualify for tax credits to help pay for your health insurance.

Do not let yourself be subject to these fees. Get the health insurance the ACA requires, and that you deserve. To have a certified agent help you determine the right coverage and secure it at the right price, contact Bernardini & Donovan Insurance Services today. Located in Redlands, we are here to help you secure the best protection for you and your family. To get the health insurance you deserve this year, call us today!

What Does Your Employers Plan Mean For Your Subsidies?

For most, health insurance options through your workplace are good news. If, however, you had plans to secure subsidies to help you pay for an individual health plan outside of your work, your employer’s offer of coverage may be a problem for you. Make sure you do not opt out of health care through your work only to find yourself without tax credit.

How does qualification for health care subsidies work? According to the Affordable Care Act (ACA), anyone who is at an income level of 400% or less of the federal poverty levels can qualify for tax credits to help them cover the cost of health insurance. These subsidies are available in your specific state and can be applied for during the open enrollment period, which ends February 15th.

If, however, you work somewhere that offers affordable health insurance and you choose not to accept a plan through your workplace, you will not qualify for subsidies. The same is true if you are eligible for coverage through Medicare. The government is committed to helping every American get the health care he or she needs, but if you choose to opt out of perfectly good coverage there will be no aid for you. That is because your job-based plan counts as the now federally mandated minimum essential coverage. Securing a plan through your workplace will also help you avoid the tax penalties that could be assessed if you do not have coverage.

To understand how your employer’s coverage affects your subsidy eligibility and what to do if you want a plan other than the one offered through your workplace, do not hesitate to contact Bernardini & Donovan Insurance Services today. Located in Redlands, we are here to help you secure the best protection for you and your family today. Connect with a certified agent; call us today!

As the next open enrollment period fast approaches, many state insurance exchanges are preparing for the overflow of traffic. Most state insurance exchanges have begun preparing for the second Obamacare enrollment period by adding new carriers. However, Covered California did not follow the trend, rather they chose to decrease in size. Yes, you heard right!

As one of the largest states in America, many were surprised to hear that Covered California only had 13 carriers at the start of the first open enrollment period. This year, Covered California will only have 10 carriers. For any other state, 10 carriers would suffice. Of the 10 Covered California carriers, only 4 of them are major insurers with Kaiser Permanente, Blue Shield of California, Health Net, and Anthem Blue Cross.

As if your freedom of choice was not taken with the implementation of Obamacare in the first place, forcing all Americans to obtain health insurance, you now have even less choice. Many regions throughout California are forced to depend on the only insurance carrier available to them, eliminating choice altogether.

Many insurance experts are fearful of the lack of choice Covered California has provided. Since the lack of varying insurance carriers eliminates competition fears continue to rise about the success of Covered California. One main concern that many insurance experts have brought to everyone’s attention is the insurance carrier’s ability to raise prices for insurance. The purpose of Obamacare is to provide Americans with affordable health care, however, the lack of multiple participating carriers gives contributing carriers the ability to raise prices, because there is a lack of many other health insurance options.

We understand that the various implications surrounding Covered California may have you confused, and that is why we are available to dispel any myths and reveal only the truth. Contact Bernardini & Donovan Insurance Services for all of your California health insurance needs.