If you are one of the many who do not have health insurance, please don’t let open enrollment close before getting a quote. A majority of policies sold through the Marketplace qualify for a tax subsidy that offsets the out of pocket cost for the premium.  Melanie Collicott can assist with the enrollment process if you’re interested in a Marketplace plan or a private plan.

Many people use the word “Obamacare” and don’t really know what that means. You cannot buy “Obamacare” as it is not a product, but a set of mandates, laws, and health care reform. The true name is “Affordable Care Act” and some highlights are: Adult children can remain on parent’s policy until the age of 26 even if not a full time student. Maternity is included in all plans. Pediatric dental visits are included. You cannot be turned down for pre-existing health conditions. There are more, but these are the major ones. All policies sold must now comply with these rules. You can buy plans privately using all private dollars. Or you can buy a Marketplace plan using your own dollars and the available tax subsidy.

The penalty for not having health insurance kicks in this year. The IRS will deduct the penalty directly from your tax refund check. According to Healthcare.gov, the penalty for 2014 (filed by April 2015) is

The fee for not having coverage in 2014

If you didn’t have coverage in 2014, you’ll pay the higher of these two amounts when you file your 2014 federal tax return:

• 1% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.
• $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

That fee will increase each year as shown:

The fee in 2015

If you don’t have coverage in 2015, you’ll pay the higher of these two amounts:

• 2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.
• $325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.

The fee after 2015

• The penalty increases every year. In 2016 it’s 2.5% of income or $695 per person. After that it’s adjusted for inflation.

Check out and share this video. Melanie Collicott is licensed and certified to offer these products and more. Contact her before February 15, 2015 for coverage. After that date, only a qualified life event will allow you to purchase a policy.

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