Day 3: Today's Important Thing to Know about Health Care Reform

Today we are going to talk about “Play or Pay.”  One of the most controversial parts of the Affordable Care Act is the individual mandate which means that come 2014 if you don’t have health insurance you will have to pay a fine.  The Supreme Court ruled it constitutional because it is actually a tax.  Thus, “Play or Pay,” you either play by buying health insurance or you pay the fine. The fine or tax will be assessed on your 2014 tax return due in April of 2015.  The tax will amount to $95 or 1% of your 2014 income, whichever is greater.  We hear a great deal of the news about the $95 but most people who don't purchase health insurance will pay 1% of their 2014 income.  Tomorrow we will talk about how you can purchase this creditable health insurance so you are not assessed a fine.