Until we know what President-Elect Trump is going to do to revamp/repeal ACA, what will be kept, what will go, etc., we do still need some coverage, now don’t we? So many people are scrambling for options, getting fed up with taking the hit on paying those premiums and deductibles, I’d like to offer up what I believe are a couple of viable options.
- ACA (Affordable Care Act) compliant and one program that offers some unique options would be the Christian Health Ministries. Two points to make here, then you an go to the website and gain the rest, which is plentiful. a. If you’re a Christian, you can be a member. b. There is no open enrollment timeline.
- You can gain any and all information that you’ll need today at the website Connect4HealthCo.com At this site you can get fully educated, obtain quotes and sign up for a “compliant” plan.
- If you don’t care about paying a fee, you can opt for short-term health insurance. Almost all of the time, this option is going to save you quite a bit of money by year’s end. There are a number of these plans out there and the costs are generally a quarter to one half of what a compliant plan would cost you. This now popular short term insurance will not meet the minimum required essential coverage nor be considered comprehensive as defined by the ACA, so you will be assessed a fee. Many pre-existing conditions are subject to exclusion under these types of policies.
Let me explain the “fee” situation if you chose to not go with a plan that’s compliant with the ACA.
For not having health insurance in 2016-2017, it is stated that you will either pay:
- A percentage of your income – 2.5% of household income; OR
- $695 per adult and $347.50 per child under 18.
This is only paid for those in the home without current health insurance.
If paying the percentage method, only part of the income is used. That would be $10,300 if individual or $20,600 for couples that filed jointly in 2015.
If there was no coverage for part of the year, the fees are figured monthly. For instance, if you had coverage for 6 months, you would be liable for 6/12’s or 1/2 of the yearly fee.
When do you pay the fee?
The fee is due and payable when filing your tax return.
What happens if you don’t pay when you file?
The IRS will hold back the amount of the fee from current or future refunds. You will NOT incur liens, levies or criminal penalties to fail to pay.
This is what I believe to be one’s options in a nutshell. If you have the desire to learn more about short-term health or medical insurance, please reach out to me and I can offer up some education and purchase options.