Health Care – How Much Will it Cost You?
It’s finally here. The Patient Protection and Affordable Care Act (ACA) is taking effect and it’s time to decide whether to play along and get coverage or pay the penalty for going without—and nonprofit employers and their employees are covered by the law.
Penalties aren’t only for businesses without coverage (nonprofits included), but for individuals as well. While some of the business requirements to avoid fines were postponed till 2015, individuals must act now.
In 2014, fines will be relatively small – the greater of $95 for a single adult/$285 family maximum or 1% of your household income. By 2016, these amounts will have increased, reaching $695 for an adult/$2,085 family maximum or 2.5% of household income.
Compared to the cost of health care premiums (“affordable” is defined as up to 9.5% of your income), the penalties may seem small. It’s still a significant amount though, especially if you’re not accustomed to budgeting for health care.
Help may be available for those who can’t afford health care costs because of their low wages.
By October 1, Web-based health insurance exchanges (markets) will offer insurance choices to people who may not have other options, including nonprofit staff and any of your constituents who may find the exchange rates more affordable.
Lower income individuals meeting certain criteria may also qualify for tax-credit subsidies through the exchange. At Online Stewardship Accounting & Consulting Services, we recently discovered an interactive tool provided by the Henry J. Kaiser Family Foundation that enables you to calculate estimated subsidies. Simply enter your anticipated 2014 income, family size and a few other pertinent details and you’ll get an estimate in return. No need to register or enter any identifying information.
If you need a resource for your accounting, internal control or any other stewardship needs, please contact Online Stewardship Accounting & Consulting Services at Lynn@onlinestewardship.com or 904-398-4747.
Also, if you’re tired of the complex tax code we invite you to participate in our parent company’s “What Were They Thinking?!” 1040 Birthday Card contest. Spread the word!
