There has been a lot of noise about the Affordable Care Act/“Obamacare” in the media in recent months, and since many of our clients carry personal health insurance (as opposed to obtaining insurance through an employer), it is a topic of much interest.
After attending a continuing education session about Connect for Colorado and the Affordable Healthcare Act yesterday, we thought we’d share a few interesting and important tidbits:
- Individuals who are uninsured for more than three months in any calendar year may be subject to IRS penalties. In 2014, the penalty is the greater of 1.0% of taxable income or $95 per adult + $47.50 per child (up to $285 per family). By 2016, the penalty increases to 2.5% of taxable income or $695 per adult + $347.50 per child (up to $2,085 per family). While there are exceptions, everyone is required to have health insurance.
- In general, if you plan to apply for the subsidy, you must obtain insurance through the state exchange. If, however, you do not plan to apply for the subsidy, you can purchase insurance outside the exchange.
- Several advisors in the group recommended the website www.ehealthinsurance.com as a good place to shop for health insurance for those looking to purchase health insurance outside the exchange. We at TWC do not have experience with this site and cannot recommend it, but we do plan to do some research on it in the coming months.
If you are a client of The Wealth Conservancy and would like help understanding your options, please contact your planner. If you are not a client but would like to learn more about The Wealth Conservancy and the services we offer, please feel free to contact us at twc@twcinc.org or 303-444-1919.