4 Important Facts About the Affordable Care Act

Since its rocky rollout in October, the Patient Protection and Affordable Care has been the subject of controversy and debate. But much of this has obscured the simple fact that, despite a number of changes that have been made to the law in recent months, the ACA’s major provisions still remain in force.

The Patient Protection and Affordable Care Act

March 31st Deadline If you do not have qualifying health insurance through your employer, Medicare, Medicaid, or a military or veteran’s plan, you must have coverage under a qualifying plan by April 1, 2014, or you will have to pay a penalty.

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2014 Penalties

The 2014 penalty is equal to 1 percent of your taxable income or $95 per adult or $47.50 per child, up to a maximum of $285 per family, whichever is greater.

2015 Penalties

In 2015, 2 percent of your taxable income or $325 per adult or $162.50 per child, up to a maximum of $975 per family.

If you have household income above 400 percent of the federal poverty level and health insurance will cost more than 8 percent of your taxable income (after accounting for employer contributions or tax credits), you may be exempt from paying the penalty.

There are some exemptions22

More exemptions

You can also apply for an exemption if you have financial hardships or religious objections or are an American Indian, uninsured for less than three months, an undocumented immigrant, or incarcerated.

You canYou can’’t be denied due to a pre-existing conditiont be denied due to a pre-existing condition

This is one of the central tenets of healthcare reform: Insurers can no longer reject you for coverage due to a pre-existing health condition like high blood pressure or diabetes. Nor can they issue you a policy that excludes coverage for specific health conditions.

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Premiums can’t be increased due to a diseasePremiums can’t be increased due to a disease

When your health insurance policy comes up for renewal, your insurer cannot increase your premium if you have been diagnosed with a disease over the past year. But your insurer can increase your premium as part of an across-the-board rate hike for all policy holders.

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