Obamacare. Affordable Care Act Tax Provisions for Individuals and Families

Obamacare is affordable health insurance for individuals and families, and come this 2014 Obamacare. Affordable Care Act Tax Provisions for Individuals and Families will provide those eligible with a tax relief on health insurance. Some of the clauses of Obamacare (technically called the Patient Protection and Affordable Care Act) are under implementation and include far reaching consequences that will be effective from the next year. Following are a few simple aspects of Obamacare that will help you understand the act with a little more clarity.

 

Health insurance taken through employers not affected directly

American citizens covered by the employer health insurance will not be impacted directly. However, the legislation does change the landscape of overall healthcare, and this could affect you indirectly.

 

Not having health insurance can attract penalty

If you or your family is not covered with a health insurance policy as acceptable in the Act, you will be responsible to pay the federal government a tax penalty as much as $95 for adults and $47.50 for each child to a maximum of $285 per family. The penalty payable is on a pro-rata basis, meaning if you have taken health insurance for part of the year you will be exempted from paying the penalty for that period, and you will only pay for the period you were not insured and if the uninsured period is one to 3 months you will be completely exempted from paying a penalty. Others who fall under the category of penalty exemption include Native Americans, undocumented immigrants and if you are earning less than the taxable amount. Other hardship exemptions are also applicable.

 

Eligibility for Medicaid

This of course depends on your state of residence. Obamacare encourages expansion of Medicaid to cover those who are earning less than 133 percent of FPL (federal poverty line). But, with over 27 states not participating, the benefits you can claim could be really limited. Check on the Medicaid program site for your state to check if you state supports it or not.

 

Buy health insurance with federal tax credits

If neither the government programs nor your employer covers you with health insurance, there is still hope for you provided your income is four times less than the FPL. The credit level eligibility will

depend on your income level. Experts believe this would benefit over 26 million Americans.

 

Buy insurance through online health insurance exchange

From 1st October 2013, 17 states along with the District of Columbia will be starting online health insurance exchanges through which you can purchase health insurance till March 2014 end.

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