Tax Changes with Affordable Care Act
Under the affordable car act, there are new laws regarding minimum healthcare coverage that all Americans must have.
What is Considered Minimum Health Care Coverage?
Under the Affordable Care Act, the federal government, state governments, insurers, employers and individuals, obtained shared responsibility to modify and improve the availability, quality and affordability of health insurance coverage in U.S.. From year 2014 onward, the provision of shared responsibility for individuals, requires each person to have minimum essential health coverage (known as minimum essential coverage) per month, qualifies for an exemption or make a payment when you file your federal return income taxes.
What is Considered Minimum Coverage under the Affordable Care Act (ACA)?
The minimum essential coverage includes:
- Employer-sponsored coverage (including coverage for COBRA and retiree coverage)
- Acquired in the individual market, including a qualified health plan offered through the Health Insurance Market (also known as the Affordable Insurance Exchange) Coverage
- Medicare Part A and Medicare Advantage
- Most Medicaid coverage
- Coverage of the Children’s Health Insurance Program (CHIP acronym in English)
- Certain types of health insurance coverage for veterans, administered by the Veterans Administration
- Coverage provided to Peace Corps volunteers
- Coverage under Nonappropriated Fund Health Benefit Program,
- Health care for refugees run by the Administration for Children and Families
- Self-funded health coverage offered to students of universities for years of coverage plans or policies that begin on or before December 31, 2014 (for years post-coverage plans or policies, the sponsors of these programs may apply to HHS to be recognized as minimum essential coverage)
- State high-risk groups for years of coverage plans or policies that begin on or before December 31, 2014 (for years post-coverage plans or policies, the sponsors of these programs may apply to HHS to be recognized as minimum coverage key)
Minimum essential coverage includes not only provides limited coverage, such as coverage only for vision care or dental care, benefits, Medicaid only covers certain benefits, such as family planning, workers compensation or disability policies.
What are Exemptions to Minimum Coverage under the Affordable Care Act?
- Religious Awareness: You are a member of a religious sect that is recognized as opposed to religious conscience by accepting any insurance benefit. The Social Security Administration manages the process of recognition of these sects, at the discretion of the law.
- Ministry to share the care: You are a member of a recognized ministry as a ministry to share the care.
- Indian Tribes: You are a member of an Indian tribe federally recognized.
- You do not have the requirement to declare: The household income is below the threshold for filing a tax return. The requirement to file a federal income tax depends on your filing status reporting purposes, age and the types and amounts of income. To find out if you have a requirement to file a federal tax return, use the Interactive Tax Assistant ( ITA)
- Short Interruption Coverage: You were without coverage for less than three consecutive months during the year.
- Adversity: A Health Insurance Market, also known as an Affordable Insurance Exchange certifies that you have suffered a hardship that prevents you from obtaining coverage.
- Options coverage out of reach: You can not afford coverage because the minimum amount you pay for premiums, is more than eight percent of household income.
- Incarceration: You are in a jail, prison or penal institution or correctional facility Similarly, after charges are placed against.
- Illegal Resident: You are not a citizen or a naturalized citizen nor a legal resident of the United States.
Remember, that this is the type of coverage an individual needs to have to meet the individual responsibility requirement under the Affordable Care Act. This includes individual market policies, job-based coverage, Medicare, Medicaid, CHIP, TRICARE and certain other coverage.