Tag Archives: ObamaCare

Obamacare Penalty Tax

An Obamacare Penalty Guide For All California Residents

The purpose of this article is to help individuals, families, and early retirees avoid the Obamacare penalty under the Affordable Care Act.  Obamacare Penalty

Don’t miss the next Open Enrollment season, and avoid mistakes that could cost you money and opportunity.  This is a good reference article, so retain it until you need it.

 

  • Since January 2014, most people will be required to have public or private health insurance or pay a financial penalty AKA the Obamacare Penalty tax.

Avoid the Obamacare Penalty and use the savings to buy vision care insurance

 

  • As of 2016, the penalty has been increased substantially.
  • Parents with children who are tax dependents will be responsible for making sure their children comply or also face penalties.

[Note: If you are a small business or employer representative researching your obligations under the new law, click here.  The remainder of this article is intended for California individuals and families.]

 What Is The Obamacare Penalty For Not Having Health Insurance?

  • In 2014, individual penalty was the greater of 1% of the family income above the tax filing threshold or $95 per adult and $47.50 per child (max $265 per family).
  • By 2016, the maximum penalty grows to the greater of 2.5% and $2,085 per family. 
  • Do you qualify for lower rates with a Premium Assistance Subsidy?  Find out here.
  • CoveredCA-ComparisonChart and Paper Application

How will mandatory health insurance and the Obamacare penalty tax be enforced?

The IRS will administer such penalties on personal tax returns.  Besides the Obamacare penalty aspect, there is also some positives, deserving mention:  Follow the actual experience of an Agent’s first week of Obamacare on this Prezi:  My First Week of Obamacare Open Enrollment

In summary, avoid mistakes that can cost you money and opportunity. Tax issues should be reviewed with your tax advisor.  Here is a resource from the IRS: IRS Affordable Care Act Tax Provisions.

 You can find local assistance.

 

Keeping It Simple: Why Obamacare Is Not Delayed e.g. OMB 1210-0149 Healthcare Exchange Disclosure Notice

 

[Attention: Small Employers should read about huge penalties beginning August 2015]

[Attention: Anthem Blue Cross plan holders should read Anthem cancels CovCA plans for majority of California beginning 2018]

This is a form 1210-0149 update to a previously published Coverage California article  (for the latest Coverage California article about looking for affordable coverage, click here), and the update focuses on some key points in distributing a special notice to employees i.e. the so-called Obamacare Healthcare Exchange disclosure notice omb no. 1210-0149, which was required by almost all employers by October 1, 2013.  Don’t overlook the fact that on an ongoing basis, it must be distributed to new employees in a timely manner e.g. 14 days.  Read on or get help by registering with Eventbrite…

As the individual marketplace continues to deteriorate, the small group market has gained a firmer footing, including stable PPO networks and easier participation rules with Kaiser and traditional PPO plans.  Is it time to review available small group plans?   Reserve your appointment early for Open Enrollment, which begins this November.  Find local assistance in San Jose, Santa Clara and the San Francisco bay area or via telephone, throughout Northern and Southern California..

or view online pricing, free of charge

Key Points For Small Business Employers (Technical Notice 2013-02)

VSP Individual Plan Application Link

VSP Quotations

Employers must provide a notice of coverage options to each employee, regardless of plan enrollment status (if applicable) or of part-time or full-time status.  This means just about everybody:

  • Current employees:  Employers must provide this notice by October 1, 2013.
  • New Hires:  Employers are required to provide the notice to each new employee at the time of hiring beginning October 1, 2013.
  • Timing: The notice should be provided within 14 days of an employee’s start date.
  • Distribution Method: The notice may be provided by 1st class mail or it may provided electronically if the requirements of the Department of Labor’s electronic disclosure safe harbor at 29 CFR 2520.104b-1(c) are met.

 Download Healthcare Exchange Notice OMB 1210-0149

  1. Employers with an existing health plan must use this form:
  2. Employers with no existing health plan must also comply, and would use this alternate plan.
  3. In Spanish (no existing health plan) and Spanish (existing health plan)español

What happens if you do not comply?  Are there penalties for noncompliance with this healthcare exchange notice rule?  On September 11, 2013 the Department of Labor EBSA website provided an update to answer this question.  While the short answer is there is no specific DOL penalty fine (currently) for failing to comply, that is not to say California law will let you off the hook so easily.  Play it safe and distribute the notice on time.

For additional employer requirements under the Affordable Care Act legislation click here.  For rate comparisons of new group health plans, click here.  For non-group e.g. individual family plans click this link.

Remember, Open Enrollment begins November 15th:  Changes are coming to certain PPO networks.  If you did not use a Certified Agent last year, now is a good time to find one.

Finally, some good news…

Announcing the new VSP Individual Plan, great for the self-employed who can often write-off the premiums (but usually not the cost of self-insuring vision care).

Watch the VSP’s new vision care video for Individuals, Families, Retirees, and especially, the self-employed:VSP Video

4 Actions Employers Must Complete By October 1, 2013

Employers Must Act Soon (deadlines apply to all future new hires):

[Employers also read Huge Penalties for Reimbursing employees for their Individual Health Insurance Policies]

  1. This Department of Labor (DOL) regulation may surprise small employers who do not yet offer employee healthcare coverage:  The requirement hits them, too. Basically, the DOL requires that employers with as few as one employee hand out a disclosure form, even for 1099 employees. Further, the DOL has adopted different notices for different employer situations.  Make sure you are using the correct notice: Read more here.
  2. COBRA Notices- Amend existing COBRA notices to include new Department of Labor required language for employer COBRA disclosures.  Your COBRA administrator or vendor should be updating this notices.
  3. Move the money:  It is time to allocate monies you received in July, on behalf of your employees i.e. the Medical Loss Ratio (MLR) rebates.  Can you keep the refund?  Read our article about this very question.
  4. Download and properly distribute Summary Benefit Coverage forms by the appropriate deadline.  For a quick reference, download a free PDF Summary of SBC Requirements, which outlines employer requirements and deadlines. Kaiser employers read a related article here.

As the individual marketplace continues to deteriorate, the small group market has gained a firmer footing, including stable PPO networks and easier participation rules with Kaiser and traditional PPO plans.  Is it time to review available small group plans?   Reserve your appointment early for Open Enrollment, which begins this November.  Find local assistance in San Jose, Santa Clara and the San Francisco bay area or via telephone, throughout Northern and Southern California..

Eventbrite - Shopping For Obamacare And Better Covered California Insurance

or view online pricing, free of charge

ObamaCare Delay Is No Big Deal To Many Employers

In California, the ObamaCare 12 month delay is really a 1 month delay for many employers who were gaming the system.

News reports of the Administration’s July 2nd announcement are overlooking the fact that while implementing ObamaCare in California, knowledgeable insurance brokers have been helping employers take advantage of loopholes in the transitional relief part of ObamaCare regulations that effectively delayed  Pay or Play Affordable Care Act penalties for almost a year.

Mandatory reporting will not apply for 2014.  “Any employer shared responsibility payments (under section 4980H) will not apply until 2015.” 

Administration’s Press Release:  http://www.treasury.gov/connect/blog/Pages/Continuing-to-Implement-the-ACA-in-a-Careful-Thoughtful-Manner-.aspx

What could be a big deal, however, are updated proposed rules for these provisions that will be published later this summer.  Subscribe to this page for updates.