Affordable Health Care Act – What it means to you…
Chris Rock said it best in his Bigger & Blacker comedy special,
“…everybody, oooh you got to eat right, exercise…NO YOU DON’T! You need some coverage. Coverage will save you’re life”…
How apropos is this statement at this time. Bigger & Blacker was release in 1999 during the Clinton administration, where taxes were also raised. Now, most wealthy individuals are split across the board about receiving higher tax.
Last week was a milestone in the Obama Administration with the passing of the Affordable Health Care Act, which was signed into law back in 2010. As with the increased taxes back in 1999, there is much rave over the passing of this law and how it affects Americans in general. Today, Black Enterprise.com issued an article breaking down the 5 most important aspects of the act, they are:
1. Non-compliance penalty. Most Americans will be required to obtain qualifying health coverage by 2014 or face a penalty. The charge will gradually rise over a three-year period. In 2014, the cost will be $285 per family or 1% of household income (whichever is greater). Individual adults will pay $95. The following year, in 2015, the fee will be $975 per family or 2% of household income (whichever is greater). Individual adults will pay $325. By 2016, the cost will rise to $2,085 or 2.5% of household income (whichever is greater). Individual adults will pay $695. The penalty must be paid to the IRS along with your taxes.
2. Health insurance tax credits. Starting January 2014, if your household income is less than $88,000 for a family of four, and your job doesn’t provide coverage you can afford, you are eligible to receive tax credits to assist you with paying for insurance. An advance payment can be made to your insurance company to help cover the cost of premiums.
3. Health insurance exchange program. Starting January 2014, if your employer does not offer health insurance, you can buy it directly from an Affordable Insurance Exchange. Both small businesses and individuals will be able to participate in this new insurance marketplace. The exchange allows consumers to enroll in a private or public health insurance plan, compare insurance benefit packages to get the best deal, and determine eligibility for tax credits.
4. Increased income tax for high earners. Starting January 2013, if you’re a very high earner you might be hit with higher income taxes. There will be a 3.8% surtax on investment income earned in households earning $200,000 or more for individuals and $250,000 or more for couples.
5. Home sales tax. In addition, if capital gains on the sale of one’s primary home is more than $250,000 for an individual or $500,000 for a couple, and income requirements are met, the realized gain will be taxed at 3.8%. The rise in fees will help with paying for the cost of healthcare.
The biggest issue with the Affordable Health Care Act is the “penalty”. Most people, specifically Republicans, are calling it a tax. Well, let’s look at the definition of a penalty. Merriam Webster defines penalty as, the suffering in person, rights, or property that is annexed by law or judicial decision to the commission of a crime or public offense; the suffering or the sum to be forfeited to which a person agrees to be subjected in case of nonfulfillment of stipulations. I’m not sure how this represents a tax which is a charge imposed on property or persons for public use. You pay tax on clothes, the government takes taxes out of your check (some of which attribute to your company’s healthcare costs), clearly a penalty and a tax are two different things but I digress.
Here’s the thing. Before you get your panties in a bunch, research. There’s plenty of available information out there. Without bias, the persons who this law affects the most is the entrepreneur and the employee working for a small business. Immediately both see this as a possible hindrance, however; this is where your research comes in. There are options to ensuring you have coverage. Here are three quick options below:
- Charity care – you can obtain charity care from your local hospital if you have an outstanding bill. It’s income based and guarantees service from any hospital affiliate.
- Independent carriers – you can receive affordable price quotes from websites such as EINSURANCE.com and eHealth.com. It may not be what a corporation offers you, but it’s basic coverage that will at least keep you from paying out of pocket
- Government assistance/subsidy – checking with you local government to find out your options, percentages coverage, as well as cost per month can help with making sure you come out of the “uninsured” category.
For those of you with families, the passing of this bill means an insurance company cannot deny you coverage if you have pre-existing conditions, determine your level of coverage based on income, or disqualify children in your household between 21 and 26. The last key point is crucial to our college grads. The job market is saturated. Students are not graduating making the money they hoped and many are unemployed. This will ensure they are not left out there with their @$$ hanging, literally.
For someone like myself, this means everything. Specifically living off and on with health coverage over the last six years. There are times I had to pay for my doctor visits out of pocket. That $75 doctor visit, is not $75 anymore. We NEED health insurance to defray the costs of high medical expenses. So weigh in. What are your thoughts on the Affordable Health Care Act? Does it sway your vote or does it keep you right where you were four years ago?
Source: 5 Ways the Affordable Health Care Act Affects Your Wallet – Black Enterprise
