Ron Segal
Insurance Services, Inc.

HealthCare Reform                                                                       
We strive to be your direct source for updated news and information on HealthCare Reform.  On our website you will find relevant information pertaining to HealthCare Reform. 

To briefly summarize Health Care Reform, the Health Care Bill aims to reform the American Health Care System and provide affordable quality health care to mostly all U.S. Citizens and legal residents. The Patient Protection and Affordable Care Act (PPACA) was signed into law March 23rd, 2010 and upheld by a Supreme Court ruling on June 28, 2012. The bill includes preventive care and protections including guaranteed insurance coverage for any individual(s) that may have previously been denied coverage due to pre-existing condition(s).

The Health Care Bill reforms the way we buy health insurance requiring that most U.S. Citizens and legal residents purchase a private health care plan or pay a 1% - 2.5% tax (it is a tax, not a mandate). Those who cannot afford health insurance will either qualify for Medicare / Medicaid (or Medi-Cal in California) or get assistance in the form of tax credits, tax breaks or assistance with up-front costs on the Health Insurance Exchanges (carrier participation and plans will vary by state).

For Individuals:  Those without coverage will pay a tax penalty of the greater of $695 per year up to a maximum of three times that amount ($2,085) per family or 2.5% of household income.  The penalty was phased-in these past few years and was based on a per person basis and up to three (3) times that per family.  The penalty started in 2014 at the greater of $95 or 1% of your total income; the greater of $325 or 2% of income in 2015; the greater of $695 or 2.5% of income in 2016. 
After 2016, the penalty will be increased annually by the cost of living adjustment.  Exemptions may be granted for financial hardship, religious objections, American Indians, those without coverage for less than three months, undocumented immigrants, incarcerated individuals, those for whom the lowest cost plan option exceeds 8% of an individual's income and for those with incomes below the tax filing threshold.

For Employers:  The Bill requires employers to pay penalties for employees who receive tax credits for health insurance through an Exchange, with certain exceptions for small employers.

Employers with 100 or more full-time employees, including full-time equivalents, are subject the requirements under ACA starting in 2015.  
Beginning 2016, employers with 50 or more full-time employees (defined as employees working 30 or more hours per week), that
do not offer coverage and/or have at least one full-time employee who receives a premium tax credit (or subsidy) will be subject to a tax penalty of $2,160 per full-time employee, excluding the first 30 employees.  Penalties are computed separately for each month coverage was not offered.
Employers with 50 or more full-time employees that offer coverage and does not meet Minimum Value standards or has at least one full-time employee receiving a premium tax credit (or subsidy), will be subject to a tax penalty of $3,240 for each employee receiving a premium credit or $2,160 for each full-time employee, excluding the first 30 employees.