Daily Archives: October 3, 2013

Obama Health Law: Failure To Comply Gets Costlier by 2016

Obama Health Law: Failure To Comply Gets Costlier by 2016 – Washington Wire – WSJ.

Note the penalty is charged only on income above the tax filing threshold…

Someone not insured by the end of the first quarter of 2014 will be assessed a penalty of $95 per adult and $47.50 per child or 1% of household income, whichever is higher.

The Internal Revenue Service will compute the 1% of household income penalty on any income in excess of the tax filing threshold, which would be about $10,000 next year. So a person with income of $50,000 would pay the 1% penalty on $40,000 of income, or $400.

In 2015, the penalties rise to $325 per person ($162.50 per child) or 2% of income. The following year, they rise to $695 per person ($347.50 per child) or 2.5% of income. In following years, the increase is tied to the rise in the cost-of-living rate.

No matter how much one’s income, the fine is capped at a level roughly equal to the cost of a basic policy available on one of the new health-insurance exchanges opening Tuesday.


U.S. Citizens Abroad (Expats) Won’t Face Obamacare Health-Law Mandate

Expats may avoid Obamacare – U.S. Citizens Abroad Won’t Face Obamacare Health-Law Mandate – Washington Wire – WSJ.

The Affordable Care Act requires most Americans to carry health insurance or pay a tax penalty–and there’s a reason we say “most” rather than “all.”

Americans who live abroad at least 330 days of the year will be treated as if they have qualifying insurance coverage and won’t owe any tax penalty, according to the Internal Revenue Service. That’s true regardless of whether the U.S. citizen actually has health insurance in the country where he or she lives.

The IRS reasons that it would be unfair to force Americans living abroad to buy a policy on one of the new health-insurance exchanges that opened Tuesday, because most domestic policies don’t cover anything more than emergency care overseas. This IRS document has more information (see #12 for the information on U.S. citizens abroad).


Obamacare: What college students need to know

Obamacare 101: What college students need to know – CSMonitor.com.

The article mentions eligibility for catastrophic plans but does not mention they you can’t receive a subsidy if your purchase one.

My suggestion if your purchase a high deductible Obamacare option, be it Catastrophic or a Bronze plan that you consider a supplemental accident plan to go with it. They are typically in the range of $17 – $35 per month depending on plan and benefits.


Exchange readiness: Obamacare Chaos

Keep in mind, it’s only day 2 of 6 months of open enrollment – Insurance Manager: ‘We Have Yet To Have Someone Successfully Register On The Marketplace’ « CBS DC.

Potential consumer comments regarding exchange readiness…

“I think I’m through with Hawaii Health Connector,” said Richard Gamberg, 61, of Honolulu, after tweeting messages to officials and complaining to state lawmakers on Wednesday. “They’ve got ads in the newspaper, they’ve got ads on the TV — it just flabbergasts me.”

He was among the would-be customers in Hawaii who were still unable to buy insurance policies online Wednesday, forcing them to turn directly to insurance companies to examine their options. In Oregon, officials said a faulty online calculator would not be fixed until late October.

“It almost reminded me of going online and trying to buy Springsteen tickets,” said Sharon Schorr of suburban Cleveland, a self-employed accountant who finally gave up after eight hours of trying to use the exchange’s website.

“I’ve been unable to get in, and if I could have that would be great,” said Donene Feist, an outreach worker who also is executive director of Family Voices of North Dakota, a nonprofit advocacy group. “For those who got in, they said it was easy to follow.”

State reports…


“It’s day two of health care reform, and we have yet to have someone successfully register on the marketplace,” said Matt Hadzick, manager of a Highmark retail insurance store in Allentown, Pa., where people could go to register for the online insurance marketplace. “The registration process is very slow, and at one point it just shuts down.”


In California, home to 15 percent of the nation’s uninsured, officials took down the enrollment portion of the Covered California website for emergency upgrades. It was restored at mid-morning Wednesday, and 7,770 people had started applications by then, spokesman Roy Kennedy said.


People need to calm down and take a step back. The insurance will not start until January 1st, no matter if you sign up today or as late as December 15th. Regarding Oregon not being able to fix a calculator until the end of the month, for a state that fully embraced Obamacare, that IS embarrassing.