For individuals who are concerned they will face a penalty because they do not have health insurance, it is important to understand that there are low cost insurance options available. The purpose of the Affordable Care Act is to ensure that all Americans are able to access affordable health insurance. Individuals who do not meet certain exemptions under the Act will be required to obtain their own health insurance, or they will be required to pay a penalty.
Depending upon your family size, state of residence, and income, there may be multiple health insurance coverage options available to you. For individuals who are eligible, it will be possible to purchase a subsidized health plan as part of a state-based health insurance exchange. Health insurance exchange options will become effective in 2014. This naturally leads to many questions for individuals who are not eligible for subsidized plans and who will be subject to penalties if they do not purchase their own health insurance.
The best way to avoid a penalty for a lack of health care insurance is to purchase an affordable health insurance plan. Individuals who do not meet certain exemptions and who remain without health insurance may be subjected to a penalty as much as 2.5 percent of their income. Financial penalties for failure to purchase health insurance will be owed to the IRS during the tax filing season in 2015. The penalty for failure to purchase health insurance is also scheduled to increase the following year.
There are affordable insurance options available for all types of situations. One of the most common situations many people find themselves facing is a lack of health insurance coverage between jobs. While it is possible to maintain your insurance coverage due to COBRA provisions, this option is often expensive. There are affordable coverage choices available that can help you to meet continuous coverage requirements, avoid penalties, and ensure you have healthcare coverage when you need it. For individuals and families that fall in the gap area of being ineligible for subsidized health care plans but who still find it difficult to afford expensive insurance plans, there are also low cost insurance plans available for any budget. There are also affordable coverage options available for other situations, including individuals who are self-employed.
Finally, some Americans may decide that it is in their financial self-interest to simply purchase the coverage that best meets their needs and their budget – even if it leaves them liable for the penalty. For those individuals that don’t qualify for subsidies on the exchanges, and can’t currently afford a traditional health insurance policy, the ACA offers little in the way of assistance – and in fact, some provisions of the ACA may cause individual insurance premiums to increase, putting those coverage options even further out of reach. While it is not an ideal solution, some of those individuals may decide that the amount of the annual penalty is greatly outweighed by the cost of a traditional policy. This will be an issue to watch as 2014 approaches.
