The Aﬀordable Care Act (ACA) was signed into law in 2010, it underwent a signiﬁcant change in 2019. This change aﬀected the tax penalties levied on people who failed to maintain their coverage. The advocates at MD Insurance Help are happy to answer any questions about this change.
Citizens are still obligated to carry medical insurance, either through their employers, by purchasing it through a private company, or by acquiring it through the ACA exchange. However, due to 2018’s Tax Cuts and Jobs Act, starting in 2019 there is no longer a ﬁnancial penalty for those that do not carry coverage.
Due to the elimination of the penalty, it’s expected that some taxpayers who only purchased a policy to avoid the ﬁne will allow their policies to expire. Since about 4 million people were ﬁned for non-compliance in 2016 alone, the federal government will lose a signiﬁcant amount of penalty revenue.
Some individual states are beginning to implement their own penalties for its residents who do not maintain their insurance coverage. This is already the case in New Jersey, Washington D.C., and Massachusetts. Vermont and Rhode Island plan to follow suit in 2020.
The ACA still oﬀers a variety of plans for those wishing to purchase coverage. These range from the most expensive and comprehensive Platinum plans to Bronze plans with the minimum level of coverage. The second lowest-cost Silver Plan is still the only option that allows for adjustable premium rates for lower-income consumers.
The Premium Tax Credit remains the means by which the ACA maintains aﬀordability for low and moderate income households. The subsidy credits are distributed based on speciﬁc income guidelines that are adjusted from year to year.
If you’re unsure about any aspect of the Aﬀordable Care Act and how recent changes may aﬀect you, MD Insurance Help would be happy to clarify them for you. Feel free to contact us at (443) 333-8796 or www.mdinsurancehelp.com