Affordable Care Act

In recent years, the Patient Protection and Affordable Care Act (PPACA) has introduced a sweeping set of tax law changes.Whether you are an individual tax payer or an employer, we can help you find the best options for PPACA regulations.

Individual Mandate

The individual mandate that became effective January 1, 2014, affects most taxpayers and their dependents. This mandate requires individuals to have health coverage and if you do not, you must pay a fee. The penalties get steeper each year and while the best solution is to get health insurance, there are other options that you may qualify for.

Minimum Essential Coverage

The individual mandate can be satisfied with minimum essential coverage. This includes Health Insurance Market Place plans, grandfathered health plans and employer-based plans. Take a look at a full list of accepted coverage plans here.

Premium Tax Credit

Premium tax credit helps eligible low income individuals and families buy coveragethrough the Health Insurance Marketplace. Qualifications include:

  • Your household income is within a certain range
  • You cannot be claimed as a dependent
  • You file a joint tax return if you are married

Coverage Exemptions

Exemptions can be obtained to avoid the penalty for not having health insurance. Coverage exemptions include:

  • Income-related reasons
  • Certain financial hardships
  • Being uninsured for less than three consecutive months of the year
  • Member of a federally recognized tribe
  • Member of a federally recognized religious group that objects to health insurance

If you are seeking information about minimum essential coverage, premium tax credit assistance or healthcare coverage exemptions, we can provide you with the answers to your questions. Contact us today.

Employers

If you are an employer facing the mandate to provide minimum essential coverage for your employees, we can provide you with answers you need about the tax consequences. Contact us for a consultation.

  • Companies with 100 or more full-time equivalent employees will need to provide insurance for at least 70% of their full-time workers by 2015 and 95% by 2016.
  • Companies with 50-99 full-time equivalents will need to start insuring full-time employees by 2016.
  • Beginning in 2016, these employers that fail to provide minimum essential coverage to 95% of their full-time employees and their dependents can face a $100 per day per employee shared responsibility penalty.