If you don’t have health insurance coverage by March 31st, 2014, you could face a penalty for being uninsured. Don’t wait for the March 31st deadline for Health Insurance coverage! If for some reason you don’t get coverage by the deadline, you will be penalized and you won’t be able to get coverage until November 15th.
Don’t wait for the March 31st deadline for Health Insurance coverage!
The new government healthcare plans give a subsidy to those making up to 400 percent of the Federal poverty level (see chart below). But those who do not qualify for a subsidy are suddenly finding that even the most basic healthcare plans have increased their premiums dramatically to offset the potential costs of coverage for those who must be admitted, despite having potentially expensive pre-existing conditions.
Here’s a closer look at the subsidies, and then a few ideas for those who need insurance but earn too much to qualify for a subsidy.
Health Insurance Subsidies
Health insurance subsidies are based on your modified adjusted gross income (MAGI). But your eligibility is not based on last year’s income. Instead you must estimate this year’s income. If you earn more than planned you may be required to pay back any subsidies. And if you earn less, you may be able to claim additional subsidies when you do your tax return in April, 2015.
If you earn “too much” and don’t qualify for a Federal subsidy, you might be in for a shock. Individual and family plans are suddenly far more expensive than just a year ago. A survey by eHealthInsurance shows that as of mid-February, 2014, the average premium for an individual cost $274 per month - a 39 percent increase from the average individual policy a year ago, before Obamacare went into effect.
And family coverage has similarly increased. The average plan currently chosen by families who do not qualify for a subsidy because their income is above the subsidy limit is $658 per month – a 54 percent increase over the average family premium in February, 2013!(read more here)
Don’t wait for the March 31st deadline for Health Insurance coverage and face the chance to get penalized on your taxes. Use the healthcare.gov website to find out about the many subsidies available to you right away. If you make more than what the subsidies allow, talk to a health care provider to find the best deal within your state. Each state has websites that offer help with the new coverages as well.