Obamacare Florida: What does it require for families and individuals?

The Affordable Healthcare Act, also known as Obamacare, creates new responsibilities and consequences for individuals when obtaining health insurance.

Beginning in 2014, all individuals must have “minimum essential coverage” through an employer-sponsored plan or an individual plan, such as one purchased on an exchange. This is a must. Not purchasing insurance will result in a penalty or tax, which is on a sliding scale for three years.

In 2014, the penalty will be $95 per uninsured adult, or 1 percent of the household income over the filing threshold. In 2015, the penalty will be $325 per uninsured adult, or 2 percent of the household income over the filing threshold. In 2016, the penalty will be a whopping $695 per uninsured adult, or 2.5 percent of the household income over the filing threshold.

For individuals under 18 the penalties will be half of the amounts. The total household penalty may not exceed 300 percent of the adult penalty or the national average annual premium for bronze level health coverage.

You may not have to worry. There are exceptions for individual responsibility, including those who aren’t lawfully present in the United States or taxpayers with income under 100 percent of the poverty line. These individuals will qualify for Medicaid. Also exempt are people who cannot afford coverage when contributions toward coverage exceeds 8 percent of household income, or people who were not covered for a period of less than three months during the year.

When employer-sponsored plans are not available for people who are in the individual marketplace, unemployed, self-employed or work for businesses that do not offer insurance or whose plan is unaffordable, they must obtain an individual plan. About 25 million people will utilize individual exchanges in 2014, according to the Congressional Budget Office.

Luckily, there is financial assistance available. About 19 million people with insurance via an exchange might be eligible for a Federal Premium Assistance Tax Credit subsidy to help pay for coverage. This credit is available to individuals and families with incomes between 100 and 400 percent of the federal poverty level.

The subsidy is tied to the annual premiums your family is required to pay and will change based on the income your household takes in each year. Currently families eligible for a health reform tax subsidy make between $$47,000 and $95,000 annually.

For more information on individual responsibility under Obamacare and how it might affect your insurance policy, contact an agent today.