The Affordable Care Act was passed in 2010 and since then several changes have been taking place while many more are still to come in 2014. Take for instance, the individual mandate which rules that all individuals must have insurance coverage beginning in 2014 or face a tax penalty.
Many Americans are uninformed regarding the new health law and do not completely understand how the changes will affect them. One major provision of the ACA is meant to help make insurance more affordable to individuals and families in the middle class through tax subsidies. A CNN Money article stated that “nearly 26 million Americans could be eligible for health insurance subsidies next year but most don’t know it.”
What are the Subsidies?
Individuals who purchase health insurance after January 1, 2014 through a health exchange will be eligible for subsidies for health insurance premiums and cost sharing if:
- Their income is less than 400 percent of the federal poverty level (FPL)
- Individuals receiving coverage through an employer can get subsidized coverage if their premiums cost more than 9.5 percent of their household income or the plan is inadequate, meaning it pays less than 60 percent of the cost of covered benefits.
The ACA provides two forms of subsidies to help consumers pay for health insurance. One is a monthly premium assistance tax credit which lowers the premium amount an individual or family must pay. The second is a cost sharing assistance, which limits a person’s maximum out-of-pocket costs.
With the health law changes happening, it’s more important than ever to understand how the ACA will affect you now and in the coming years. For more information on health reform and FL health insurance plans, contact us at 866-217-2873 and an expert will be happy to answer your questions.
We are health insurance consultants / agents with many years of experience in the health insurance field and access to multiple health insurance company’s plans and pricing. We will work with each you to find the right group or individual health insurance plan to fit your needs and budget. Serving clients in and around Greater Jacksonville, Orlando, Tampa, Miami, Florida and more. Contact us at 866-217-2873.
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