Help!!! I forgot to pay my health insurance bill!

We are in the brave, new world of federally-controlled heath insurance.  The Affordable Care Act allowed the federal government to set annual open enrollment periods.  During those weeks (usually in the fall of the year), you may enroll in a new health plan or change your current plan.  Outside of those few weeks a year, an individual cannot enroll in health insurance unless they have a qualifying event such as getting married, turning 26 or losing their coverage.  These open enrollment periods apply to ALL health insurance not just insurance purchased on the federal marketplace that people erroneously refer to as "Obamacare."  The only exception are plans provided through employers or government programs such as the VA or Medicare (which has its own enrollment periods).

Now, here is the problem.  If you forget to pay your health insurance bill and that plan is terminated by the insurance company, YOU CANNOT ENROLL IN ANOTHER PLAN until the annual open enrollment.  And, since you did not have coverage for a period of time as required by the federal government, you will be assessed a penalty on your tax return.

For security reasons, I don't usually recommend for a person give out their banking information.  However, paying for your HEALTH INSURANCE (and perhaps your car insurance) is a big exception!  You need for that bill to be paid first!  What if you were in an accident or some disaster happened and you were physically unable to pay your bill?  Just when you might need your health insurance the most, it could be terminated for lack of payment and you can't get it back.

So, lesson learned.  Everyone has money problems once in awhile but, with the new ACA law, paying your health insurance premiums is as serious as, well, a heart attack.

.

Day 4: Today's Important Thing to Know about Health Care Reform

 

Yesterday I mentioned “creditable” health insurance.  Today’s important thing to know is that there is no such thing as “Obamacare.”  The Affordable Care Act is a law that requires health insurance companies to comply with certain requirements in order to offer to you creditable health insurance.  These policies are offered through private insurance companies not the federal government.  The Affordable Care Act is a law not a program like Medicare.  New ACA compliant or creditable policies will offer a standardized set of benefits.  In order to make these benefit rich policies affordable, low income individuals and families will receive a tax subsidy from the federal government.  Tomorrow we will look at what the standardized benefits are.

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.

Day 1: Today's important thing you need to know about health care reform

1.      The Patient Protection and Affordable Care Act, commonly known as Obamacare, was officially signed into law in March of 2010 and upheld by the Supreme Court.  Some parts of the law have already gone into effect like covering children up to the age of 26 and preventative exams provided at 100% on all health insurance.  A major shift occurs with the PPACA.  The primary responsibility of having health insurance shifts to the individual.  So, over the next few days, let’s keep things simple.  Each day I will give you one piece of important you need to know about Health Care Reform.