Day 7: Today's Important Thing to know about Health Care Reform

Today’s important thing to know is about tax subsidies.  Tax subsidies or credits that will be available from the federal government to low-income individuals and families to help them pay their health insurance premiums.  The Affordable Care Act capped the percentage of income an individual can spend on health insurance at 9.5%.  To be deemed affordable, your health insurance must be no more than 9.5% of your annual income or your modified adjusted gross income from your tax return.  This cap is just for an individual.  Family coverage may, and probably will, cost more than 9.5% of your income.  Individuals and families between 100% and 400% of the federal poverty level (or approximately $45,000 for individuals and $90,000 for a family of four) will receive a federal tax subsidy or tax credit each month paid directly to their insurance company thus lower their insurance premium to the affordable level.  Calculating the tax subsidy is fairly complicated so if you have specific questions, email me via the contact box here.  Tomorrow we will talk about when the marketplace and tax subsidies begin.

Day 6: Today's Important Thing to know about Health Care Reform

Today’s thing to know is how to purchase creditable health insurance.  For people fortunate enough to have health insurance provided through an employer, not much will change except perhaps the premiums.  Most employer plans will be grandfathered for at least some period of time.  Grandfathered plans will not be required to provide the standardized benefits that we discussed yesterday.  If you provide your own health insurance or currently have no health insurance, you can purchase the new health insurance through the federally facilitated marketplace or through a public marketplace.  Tennessee opted out of having its own marketplace.  Through the federally facilitated marketplace you can purchase health insurance and, if you qualify, you can receive tax subsidies from the government to pay a portion of your premiums.  You can access these marketplaces online or via your local, FFM-certified insurance broker, like me.  Tomorrow we will discuss the tax subsidies and how you qualify.