Health Insurance FAQs: What Will Reform Do?
What reforms have we seen already?
Some changes in how health insurance works have already taken effect, as a result of the recent legislation generally known as "Obamacare." Expect more changes in the next couple of years. Medicare coverage has been expanded to include gradually increasing discounts on prescription drugs, no-cost preventive care, and in-home services. Insurance premiums are now more tightly regulated, and the Community Living Assistance Services and Supports (CLASS) act will take effect late in 2012, which will provide better long-term care for people with disabilities.
Will health care reform affect my income tax?
Possibly. Starting in 2013, you will not be able to itemize deductions for unreimbursed medical expenses unless they total 10% of your income. (The current threshold is 7.5%.) Starting in 2014, when an individual health insurance policy will be compulsory for most U.S. citizens, tax credits will be available to people who can't afford a policy.
Starting in 2014, can I be prosecuted for not buying health insurance?
No, but you can be penalized. The penalty will be small at first, but in 2016 the penalty will rise to $695 for an individual, up to $2,085 per family, or 2.5% of household income, whichever is greater. The penalty will increase annually based on the cost of living. However, if you incur the penalty you will not be prosecuted. The government will take the penalty out of your tax refund.
What if I can't afford health insurance?
Medicaid, a government-funded insurance, will be available to those with low or no income who have certain conditions. Low-cost "basic" insurance, with limited coverage, will be available to uninsured people whose incomes do not exceed 200% of the Federal poverty line.
Some changes in how health insurance works have already taken effect, as a result of the recent legislation generally known as "Obamacare." Expect more changes in the next couple of years. Medicare coverage has been expanded to include gradually increasing discounts on prescription drugs, no-cost preventive care, and in-home services. Insurance premiums are now more tightly regulated, and the Community Living Assistance Services and Supports (CLASS) act will take effect late in 2012, which will provide better long-term care for people with disabilities.
Will health care reform affect my income tax?
Possibly. Starting in 2013, you will not be able to itemize deductions for unreimbursed medical expenses unless they total 10% of your income. (The current threshold is 7.5%.) Starting in 2014, when an individual health insurance policy will be compulsory for most U.S. citizens, tax credits will be available to people who can't afford a policy.
Starting in 2014, can I be prosecuted for not buying health insurance?
No, but you can be penalized. The penalty will be small at first, but in 2016 the penalty will rise to $695 for an individual, up to $2,085 per family, or 2.5% of household income, whichever is greater. The penalty will increase annually based on the cost of living. However, if you incur the penalty you will not be prosecuted. The government will take the penalty out of your tax refund.
What if I can't afford health insurance?
Medicaid, a government-funded insurance, will be available to those with low or no income who have certain conditions. Low-cost "basic" insurance, with limited coverage, will be available to uninsured people whose incomes do not exceed 200% of the Federal poverty line.
Post a Comment