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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.

ACA penalities what you should know

William Jordan William Jordan , 3/31/2014
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The Jordan Insurance Group, MD, Affordable Care ActThe ACA, also known as the Affordable Care Act or Obamacare, ushers with it a large number of changes to the American healthcare system that you're going to need to know about. The Affordable Care Act was originally signed into law in the early months of 2010 by President Barack Obama. Though the goal is to make healthcare more affordable to all Americans regardless of things like age, pre-existing conditions and other factors, there are a number of portions of the law that have proven to be controversial to many. One of these components has to do with the penalties that you could be subject to if you don't adhere to all portions of the law both as a private citizen and as an employer. One of the biggest penalties that comes along with the Affordable Healthcare Act has to do with what happens if you don't have health insurance at all. It is estimated that up to 20 percent of citizens living in the United States do not have healthcare at all. Starting in 2014, a person can be penalized $95 per year or one percent of their income for having no healthcare coverage. The penalty will be assessed based on which of the two numbers is bigger. The penalty will also increase as years pass, with it rising to $695 per year or 2.5 percent of a person's income as soon as 2016. These types of penalties will be assessed by the Internal Revenue Service and will be collected via income tax returns. It is also important to note that just because you've paid the penalty doesn't mean you have health insurance. It is important to note that there many be ways for you to qualify for exemptions to the aforementioned penalties as a private citizen depending on the specifics of your financial situation. If you live in a low income household, for example, you may not be forced to pay the penalties each year. Likewise, if healthcare would cost more than eight percent of the total income of your household, you would qualify for health coverage through COBRA, Medicaid, Medicare or some other type of coverage and would not be penalized at all. Contact our office today for more information. Content provided by Transformer Marketing.