ACA Health Insurance: Are You Covered All Year?
As tax season approaches, one question that many Americans face is whether they were covered by health insurance “all year” under the Affordable Care Act (ACA). The answer to this question can impact your tax liability. In this blog, we will explore when you need to pay a penalty for not having health insurance and what you can do to avoid or minimize it.
The Individual Mandate
The ACA included an “individual mandate,” which required most Americans to have health insurance coverage. This mandate was intended to ensure that everyone had access to affordable health care and to spread the risk of medical expenses across the population. The penalty for not having health insurance was a fine, which was calculated based on your income and the number of months you were uninsured.
The Elimination of the Penalty
In 2017, the Tax Cuts and Jobs Act eliminated the penalty for not having health insurance. This means that you will no longer have to pay a fine if you are uninsured. However, it is important to note that the individual mandate is still in place. This means that you are still required to have health insurance coverage.
Exemptions from the Mandate
There are a number of exemptions to the individual mandate. These exemptions include:
You are below a certain income level.
You are a member of a religious sect that opposes health insurance.
You are incarcerated.
You are a member of a federally recognized Indian tribe.
What to Do If You Were Uninsured
If you were uninsured for part of the year, you may still be eligible for coverage through the ACA. You can sign up for a plan through the Health Insurance Marketplace or through a private insurer. If you are eligible for a subsidy, you may be able to get coverage for a low monthly premium.
Conclusion
The individual mandate under the ACA still requires most Americans to have health insurance coverage. However, the penalty for not having insurance has been eliminated. If you were uninsured for part of the year, you may still be eligible for coverage through the ACA. Seeking out the help of a licensed agent can help you figure out the current year ACA healthcare plan options that are available to you.
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