Health Care
The most frequently asked tax questions related to Health Care
Affordable Care Act - Individuals
When did the Afordable Care Act come into existence ?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
The Affordable Care Act (ACA) also referred to "Obamacare" is a United States federal statute signed into law by President Barack Obama on March 23, 2010.
On June 28, 2012, the United States Supreme Court upheld the constitutionality of the Affordable Care Act.
However, the Supreme Court held that states cannot be forced to participate in the Affordable Care Acts Medicaid expansion under penalty of losing their current Medicaid funding.
The Affordable Care Act includes a number of provisions that take effect between 2010 and 2020. Policies issued before 2010 are exempted by a grandfather clause from many of the changes to insurance standards, but they are affected by other provisions which take effect by January 1, 2014.
On June 28, 2012, the United States Supreme Court upheld the constitutionality of the Affordable Care Act.
However, the Supreme Court held that states cannot be forced to participate in the Affordable Care Acts Medicaid expansion under penalty of losing their current Medicaid funding.
The Affordable Care Act includes a number of provisions that take effect between 2010 and 2020. Policies issued before 2010 are exempted by a grandfather clause from many of the changes to insurance standards, but they are affected by other provisions which take effect by January 1, 2014.
Affordable Care Act - Individuals
Net Investment Income Tax on
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
In 2013, the new tax applied to investment income, such as interest and dividends for individuals with income over certain thresholds.
There is a 3.8% surtax levied on the lesser of net investment income or the excess of modified adjusted gross income over $250,000 for joint filers and qualified widow's, $200,000 for single filers and $125,000 for married filing separately taxpayers.
The Net Investment Income Tax will calculated on new IRS Form 8960 and transfer to Form 1040 line 60.
There is a 3.8% surtax levied on the lesser of net investment income or the excess of modified adjusted gross income over $250,000 for joint filers and qualified widow's, $200,000 for single filers and $125,000 for married filing separately taxpayers.
The Net Investment Income Tax will calculated on new IRS Form 8960 and transfer to Form 1040 line 60.
Affordable Care Act - Individuals
Can I be refused medical insurance if I have a pre existing condition?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
No. Starting in 2014, health insurance plans can't refuse to cover you or charge you more just because you have a pre-existing health condition.
Starting in 2014, being sick won't keep you from getting health coverage. An insurance company can't turn you down or charge you more because of your condition. Once you have insurance, the plan can't refuse to cover treatment for pre-existing conditions. Coverage for your pre-existing conditions begins immediately.
This is true even if you have been turned down or refused coverage due to a pre-existing condition in the past.
The only exception is for grandfathered individual health insurance plans -- the kind you buy yourself, not through an employer. They do not have to cover pre-existing conditions. If you have one of these plans you can switch to a Marketplace plan during open enrollment and immediately get coverage for your pre-existing conditions.
Starting in 2014, being sick won't keep you from getting health coverage. An insurance company can't turn you down or charge you more because of your condition. Once you have insurance, the plan can't refuse to cover treatment for pre-existing conditions. Coverage for your pre-existing conditions begins immediately.
This is true even if you have been turned down or refused coverage due to a pre-existing condition in the past.
The only exception is for grandfathered individual health insurance plans -- the kind you buy yourself, not through an employer. They do not have to cover pre-existing conditions. If you have one of these plans you can switch to a Marketplace plan during open enrollment and immediately get coverage for your pre-existing conditions.
Affordable Care Act - Individuals
Can I get dental coverage in the Marketplace?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
In the Health Insurance Marketplace, you generally can get dental coverage as part of a health plan or by itself through a separate, stand-alone dental plan. Under the health care law, dental insurance is treated differently for adults and children 18 and under.
Dental coverage for children is an essential health benefit. This means it must be available to you as part of a health plan or as a free-standing plan. This is not the case for adults. Insurers don’t have to offer adult dental coverage.
Starting in 2014, you must have health coverage or pay a fee. But this is not true for dental coverage. You do not need to have dental coverage to avoid the penalty.
Dental coverage for children is an essential health benefit. This means it must be available to you as part of a health plan or as a free-standing plan. This is not the case for adults. Insurers don’t have to offer adult dental coverage.
Starting in 2014, you must have health coverage or pay a fee. But this is not true for dental coverage. You do not need to have dental coverage to avoid the penalty.
Affordable Care Act - Individuals
Can I be refused Medicaid medical insurance if I have a pre existing condition?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
Medicaid and the Children's Health Insurance Program can not refuse to cover you or charge you more because of a health condition.
Affordable Care Act - Individuals
What is the IRS website with information on the Affordable Care Act?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
For more information on the Affordable Care Act provided by the IRS go to:
http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home
Affordable Care Act - Individuals
Is there a new government run insurance plan?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
There is no government run insurance plan or single payer system established under the Affordable Care Act. The government will only run the health care exchanges and the insurance industry will still be run by private companies.
Public exchanges will be available in all 50 states and 4 levels of health care insurance will be offered. They are platinum, gold, silver and bronze. Each insurance plan will offer the “minimum essential coverage”, which is needed to avoid paying a penalty. Private exchanges will be available as an alternative to the public exchanges.
Public exchanges will be available in all 50 states and 4 levels of health care insurance will be offered. They are platinum, gold, silver and bronze. Each insurance plan will offer the “minimum essential coverage”, which is needed to avoid paying a penalty. Private exchanges will be available as an alternative to the public exchanges.
Affordable Care Act - Individuals
What is the penalty for not having health insurance in 2016?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
The 2016 penalty is the greater of:
$695 per year ($2,085 maximum per family), or
2.5% of household income.
There was no penalty in 2013. The penalty is phased in over time. Beginning in 2014, U.S. citizens and legal residents must carry health insurance or be subject to a penalty.
The 2014 penalty was the greater of: $95 per year ($2,085 maximum per family), or 1.% of household income.
The 2015 penalty was the greater of: $325 per year ($2,085 maximum per family), or 2.% of household income.
There was no penalty in 2013. The penalty is phased in over time. Beginning in 2014, U.S. citizens and legal residents must carry health insurance or be subject to a penalty.
The 2014 penalty was the greater of: $95 per year ($2,085 maximum per family), or 1.% of household income.
The 2015 penalty was the greater of: $325 per year ($2,085 maximum per family), or 2.% of household income.
Affordable Care Act - Individuals
What is the government website to buy health care insurance?
Asked Thursday, November 21, 2013 by an anonymous userCPA Answer:
Go to https://www.healthcare.gov/