Beginning Jan. 2014 all Americans will be required to enroll in a healthcare plan that maintains minimum essential coverage or pay a penalty (legally defined as a tax given the Supreme Court’s ruling). To offset the financial burden of maintaining coverage, the Patient Protection and Affordable Care Act (PPACA) provides tax subsidies – the premium assistance subsidy and cost-sharing subsidy – to qualifying individuals and families at or below 400% of the federal poverty level (FPL). It also extends Medicaid coverage to individuals and families at or below 138% of the FPL, up from 100%.
Check out the infographic below to find out if you will be eligible to take advantage of these programs. If you want to learn exactly how much you may be eligible for, read this brief from the Henry J. Kaiser Foundation: EXPLAINING HEALTH CARE REFORM: Questions About Health Insurance Subsidies
To learn how other parts of the PPACA effect you, check out our collection of easy to understand infographics and articles on the new healthcare law.
Understanding the Affordable Care Act -Tax Subsidies [INFOGRAPHIC] via HR Block
JDKatz, P.C. is a full-service law firm focused on tax law and estate planning. We are dedicated to minimizing your existing liability and risks while providing valuable tax planning to streamline your tax issues in the future. Please call us at 301-913-2948 to schedule an appointment to meet with one of our trusted attorneys.