Affordable Care Act Sign Up

January 31, 2016 is the last day to sign up or change health insurance coverage for the 2016 year.

Last year the issue with signing up was the computer system not working; this year it is all the people who didn’t fill out form 8962 Premium Tax Credit or received an incorrect 1095-A.  In 2014 when people signed up for health insurance they estimated what their income would be for the next year.  Based on that amount they received a subsidy.  In order to receive a subsidy this year they were required to fill out form 8962 regardless if they were required to file taxes or not.  The IRS has a document that covers this:  https://www.irs.gov/pub/irs-pdf/p5201.pdf  The IRS sent out letters and worked with states to get as many people as possible help to file that form.

It can be daunting to fill out taxes without assistance and/or without some sort of tax preparation software.  All of the forms for the Health Insurance tax issues were included in the “file for free” software available online; or in purchased tax software.  The IRS has on their site the list of where to get free help for filing returns for qualifying individuals:

Recently the Affordable Care Act has been in the news as the legislator voted to repeal ObamaCare.  At least that is what all the headlines said.  Actually they voted to repeal key sections of the bill:

  • Phased out funding for subsidies to individuals with incomes between 100 and 400 percent of the poverty line
  • Repeals the expansion of Medicaid including:
    • After 2017 hospitals and states may no longer elect to provide Medicaid services to individuals duing a presumptive eligibility period
    • benefits for certain individuals whose income does not exceed 133 percent of the poverty line.
    • Ended the increased Federal Medical Assistance Program for childless adults aand home and community-based attendant services on Dec. 31, 2017.
    • Medicaid benchmark plans are no longer required to provide minimum essential health benefits
  • Repeals the risk adjustment programs that appropriates funds to insurers to cover high risk individuals
  • Restrict the federal government from operating Health Care exhanges
  • Eliminate tax penalties for individuals who do not purchase health insurance and employers with 50 or more employees who do not provide insurance plans.
  • Elimante taxes on medical devices and the “Cadilac tax” on the most expensive health care plans
  • Repealed the tax on indoor tanning
  • Eliminated the Medicare tax on income above a certain threshold.  (Upper income individuals and families)
  • Lowers the tax on distributions from Health Savings Accountss and Archer MSAs that are not used for medical expenses.

The bill was vetoed by President Obama.

 

 

 

Advertisements

2 thoughts on “Affordable Care Act Sign Up

  1. What I find interesting about the repeal-like proposals is the failure to realize three essential points. First, the ACA is actually value accretive to those who are living at or beneath paycheck to paycheck. These are the folks who everyone says they want to help. Second, the ACA features are well received when segregated from the name, with the lone exception being the mandate per Kaiser Family Foundation. Third, the ACA is working pretty well, but could use some improvements, one being to fully implement it through Medicaid expansion in the remaining states. I recognize these points fall on deaf ears for some, but those same folks should know the ACA is largely patterned after a Republican idea that was advocated by Tea Party leadership for the whole country. Thanks for doing this, Keith

    Like

    1. They claim they want to help the middle and lower income groups; yet their actions tell the real story. For example this bill, which they are voting on again to over turn the veto, it eliminated all assistance for middle and lower income groups and gave the wealthy tax breaks.

      The ACA does some good things…and leaves room for improvement.

      Like

Thoughts? Share below :-)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s