What is the minimum essential coverage under ObamaCare?
Could you be exempt from having to pay any fines?
Under the Affordable Care Act or ACA most Americans are required to get minimum essential coverage. That has many Americans wondering what the minimum essential coverage is and how to get it for themselves and their family.
Many people remain confused on how to sign up and what the best option for them is. We’ve all been watching the news and hearing how difficult the Health Insurance Marketplace website is proving to be. While the Obama Administration continues to sort out the technical issues that the website has experiencing, I wanted to share with you that Benefits Age can help you find your minimum essential coverage.
Benefits Age is a full service medical/benefits insurance broker that specializes in Obama Care compliance for individuals and businesses. Benefits Age can even find you minimum essential coverage for as low as $40.00 per person. This will help employers avoid the noncompliance penalty of $2,000. First, let’s look at what the government means by minimum essential coverage.
Minimum Essential Coverage Defined
Basically, minimum essential coverage is coverage that avoids the individual mandated penalty. It is defined by HealthCare.gov as,
The type of coverage an individual needs to have to meet the individual responsibility requirement under the Affordable Care Act.”
This includes specific plans that are sponsored by the government, through your employer, some plans that are in the individual market, certain grandfathered plans, and state health benefits.
The news is rampant with stories of people everywhere being unable to sign up for the affordable health care plans they were promised on the healthcare.gov website. While some cannot even sign up, others are disappointed by the available options.
I am here to tell you that Benefits Age has plans available for as low as $40 a month per person. These plans all meet the minimum essential coverage.
If you do not obtain the minimum essential coverage, you will be facing a fine come 2014. Until 2016, the government is giving those who do not purchase health insurance a break. The fines include:
- For the first year (2014), the fine will be $95 or 1% of the combined household income (whichever is higher). If you have any uninsured children by 2014, it will cost you an extra $47.50 for each child.
- In 2015, the fine increases to $325 per uninsured individual or 2% of the household income.
- By 2016, fines will increase and will cost you $695 dollars or 2.5% of your combined household income if you have yet to purchase health insurance (again whichever is higher).
Penalties will increase in 2017 by the cost of living adjustment. All of these fines will be due when you file your taxes.
Exceptions to the Penalty
To make things even more confusing, there are exceptions to the mandate and the fines. According to Aetna, those who are incarcerated, not lawfully here in the United States, and those who have religious exemptions are exempted from the mandate. In additional you may be exempt if,
- Based on the formula contained in the ACA, you cannot afford coverage
- You income is below the federal income tax threshold
- Are Indian Tribes members
To learn if you qualify for the $40 per person per month health insurance plan or to see if you are exempt, please give my office a call or send us a message. We can answer all your questions about the Affordable Care Act and will be honored to help.
847-397-5300 or toll free 800-317-0181