The Affordable Care Act mandated that all United States taxpayers purchase ACA approved, qualified health plans or pay a tax penalty when reconciling taxes. This is often referred to as the individual mandate. The individual mandate went into effect at the beginning of January 2014 and continues each year. The penalty for not having coverage is paid on your Federal Income Tax Returns for each full month you or a family member does not have health insurance (unless you have an exemption) and is based on your Modified Adjusted Gross Income. In addition, the penalty increased in 2015 and is increasing again in 2016. Below is a list of the graduating tax penalty as outlined in the Affordable Care Act.
• 2014: a minimum of $95 per year or up to 1% of annual individual income (whichever is greater)
• 2015: a minimum of $325 per year or up to 2% of annual individual income (whichever is greater)
•2016: a minimum of $695 per year or up to 2.5% of annual individual income (whichever is greater)
As the table shows, the tax penalty for not having health insurance continues to rise, making the cost of remaining uninsured higher and higher. Although health insurance premiums have increased, so has the cost of choosing to go uncovered. By remaining uninsured, not only will you pay a tax penalty, you also run the risk of incurring crushing medical and hospital bills should you or a family member become ill or injured. To avoid unnecessary out of pocket medical expenses and to avoid being subject to a tax penalty, take advantage of Open Enrollment 2016. Open Enrollment begins November 1st, 2015 and continues through January 31st, 2016, with coverage beginning January 1st for all plans enrolled prior to December 15th (some exceptions apply).
Don’t spend another year uninsured! Blue Cross Blue Shield of North Carolina offers a wide variety of health plans that can meet your family’s needs while working within your family’s budget. Get a quote and get enrolled for 2016!
For more information on Blue Cross Blue Shield of North Carolina insurance coverage, the Marketplace and healthcare gov to apply for your subsidy, please visit our website at www.nchealthplans.com or call our toll free number 888*765-5400 and speak with one of our experienced and professional agents. Let us help you navigate through the Health Care Reform changes in accordance with the new regulations of The Affordable Care Act, also known as Obama care.