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Health Insurance News: ACA Deadline is Looming

Affordable Care Act deadline March 31, 2014
Open enrollment for a qualified health plan ends March 31, 2014. Those not enrolled in a qualified health plan by that date will be subject to a penalty of $95 or 1% of modified adjusted gross income, whichever is greater. The next open enrollment period starts November 15, 2014.
Should I just take the penalty? 
You may have heard that some business are opting to take the penalty over providing insurance because it’s actually much cheaper. That may be true but the rules aren’t the same for individuals. For most people the penalty will end up costing just as much as buying insurance, PLUS you’ll be going out of pocket for ALL of your healthcare expenses.
What is the penalty? 
Those not enrolled in a qualified health plan by that date will be subject to a penalty of $95 or 1% of modified adjusted gross income, whichever is greater. The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:

  • 1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual, is used to calculate the penalty.) The maximum penalty is the national average yearly 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.

So, for a single adult with an income below $19,650/yr would pay a $95 flat rate and if you make more, and have children you’re going to end up paying 1%.
What if I don’t want to use the website?
True, there has been a lot of problems with the website and it may seem confusing to some people. But the good news is, you don’t have to go through the website to get covered. Simply contact us and, at no additional cost to you, we can help get you find the best plan for you and/or your family without all the hassle.
Contact us at (610) 777-4123 to secure your health insurance policy before it’s too late.
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For more information on health insurance and ACA regulations contact:
Mike Fields
Benefits Consultant
2237 Lancaster Pike
Shillington, PA 19607
ph ~ 610-898-6532
mfields@galleninsurance.com

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