Discerning The Aid You Can Secure For Your Health Insurance
With the Affordable Care Act (ACA) changing healthcare in the United States, it can be difficult to understand exactly what kind of support the government can offer you. According to the ACA, the government now offers subsidies to make healthcare more affordable for eligible parties. These are tax credits that are available for lower income families and individuals.
To qualify for subsidies, you must live in the United States, be a citizen of the US or lawfully residing in the country, not be in jail, and have a household income level of four times the federal poverty level or less. This means that if your Modified Adjusted Gross Income is between 100% and 400% of the Federal Poverty Level you can qualify for tax credits to help you cover the expense of your health care.
How much reimbursement can you expect? The subsidies are based on a sliding scale. The government will determine what percentage the amount you pay for your health insurance is of your income, and offer increased subsidies the higher the percentage is. The sliding scale is based off of the cost of the second least-expensive silver-level plan that is available in your area.
If you would like help from the experts to discern if you qualify for a subsidy, a certified agent like the ones at Bernardini & Donovan Insurance Services is here to aid you. To understand what the ACA means for you, how not to miss an important deadline, and how to save on your premiums, 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.
Understanding What Qualifies Coverage As Affordable
The Affordable Care Act (ACA) has changed the face of healthcare in the United States in an effort to make securing health insurance affordable for every American. What, exactly, qualifies as affordable coverage? It cannot just be a vague idea, as the government now requires all businesses that employ a certain number of people to offer affordable coverage to their employees. So how, then, is affordability defined?
According to ACA standards, a plan is considered affordable if it costs 9.5 percent or less of the individual it covers income. As an employer, how can you know if your plan will be affordable for your employees? There are a few safe harbors you can use to avoid being hit with penalty fees.
First, you can reference Box 1 on your employee’s W-2, where he or she will have to report his or her taxable income. Secondly, you can base affordability off your employee’s rate of pay on the first day of coverage under that plan. And finally, you can rest easy knowing your plan is affordable if your employee’s paid share is not more than 9.56 of the federal poverty level for a single individual. These safe harbors enable you to protect your employees by ensuring they are able to afford the protection they need, and protect your business from penalty fees.
Do not be left wondering if the plans you offer as a business or the plan you secure as an individual will be complaint with ACA regulations, only to be hit with tax penalties in April. To have a certified agent come alongside you to help you navigate the changing face of health care, 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!
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!
Since its establishment, the Affordable Care Act has stirred much controversy and confusion. Both individuals and businesses have experienced a wide range of changes due to this new law. As a business owner, it is crucial that you are in compliance and knowledgeable of the following:
- A small business with less than 50 employees working full-time is not required to offer healthcare to their employees.
- The number of full-time employees is calculated by the previous year’s number of full-time employees.
- While the idea of seasonal employees may make identifying the actual number of full-time employees more challenging, typically, if a seasonal worker is employed for less than 120 days each year, they are not considered a full-time employee.
- As a business owner with more than one entity, you will be required to combine the total number of full-time employees from each business to determine the actual number of full-time employees. This will determine if a business owner is required to offer their employees’ healthcare benefits.
- The healthcare that is offered to employees must be affordable, providing the minimum level of coverage to both the full time employee and their dependents.
- Minimum level coverage is determined by the percentage of total allowed cost of benefits, which must be at least 60 percent.
- If you are a small business owner or farmer, there are certain options you must consider. You may be eligible to deduct 100 percent of uncovered medical expenses as a business expense.
- In order to avoid any penalties, it is strongly encouraged that you seek the advice of one of the many administrative organizations to make sure you have compiled with all new laws and regulations, including the Treatment Alternatives of Safe Communities (TASC).
Bernardini & Donovan Insurance Services strives to provide Redlands, California residents with excellent insurance services custom tailored to meet your unique needs. Contact us today and allow us customize a unique health insurance package for your family based on your needs.