The Health Premium Tax Credit

Do you qualify for the health premium tax credit? As of January 1, 2014, individuals and families can buy private health insurance through the Affordable Insurance Exchanges. These exchanges are marketplaces where individuals can find private health insurance policies that are available in your area. Also available is the Kaiser Calculator, which provides an estimate of subsidy or tax credit eligibility through the affordable Care Act. The subsidies and tax credits are to help make healthcare more affordable.

The credit is aimed at middle-income individuals and families. While a larger credit is available for older individuals whose coverage costs may be higher. The credit will be refundable, which means it can be used by people who pay little or no federal income tax. You can arrange for the credit to be paid to your insurer in advance so that you have little or no out-of-pocket costs.  

One important provision to remember is the Shared Responsibility Provision. This provision became effective as of January 1, 2014. Under this provision, people of all ages, including children, must either have minimum essential health coverage, qualify for an exemption or make a payment when they file their tax return

If you still have questions about the Affordable Care Act you are not alone. A poll taken by the Kaiser Family Foundation revealed that about half of those who responded to their survey are confused and have questions about the new law and its provisions. You may find answers to your questions by calling 1-800-318-2596 or visit healthcare website at https://www.healthcare.gov/ .

How will the Affordable Care Act affect you? Do you qualify for an exemption? Contact our office at (260) 497-9761 to find out how the health care law might affect you.