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Affordable Care Act 2016

It is open enrollment time, November 2015 thru January 2016 is the enrollment period for healthcare coverage under the federally mandate Affordable Care Act or Obamacare as it is affectionately known as.

First what you need to understand, is that it mandates everyone must have health coverage or be penalized when they file taxes at the end of the year. Now I know at first glance one might think that is unfair for the government to mandate healthcare because of the rising cost of it. Well there is a provision in the ACA that gives everyone who applies an opportunity to apply for a government subsidy. The government subsidy is calculated by taking into consideration, demographics like zip codes, children or dependents and household income. Once the subsidy is determined that amount can be applied to the healthcare plan of your choice to pay for your health coverage. For many participants, 80% in my personal experience qualify for this subsidy with plans costing $0 per month. You can choose from plan participants like Aetna, United Healthcare or Blue Cross and Blue Shield just to name a few in NC.

Aside from the risk of having to pay unexpected medical expenses out of pocket, the tax penalty for not having health insurance have increased since last year and will increase again each year through 2016. By applying for and enrolling for coverage for 2015, you can avoid to pay the tax penalty when you file your 2015 tax return. Last year’s penalty was 95 per adult, this year is $325 and next year is $695.

To get more information about how to choose the right plan for you and your family contact me for free advice and enrollment through the month of January 2016 which ends the enrollment period.