In 2014, Americans must carry health insurance or face tax penalties.
In 2010, the Affordable Care Act was passed by Congress and signed into law by President Obama. The law reformed the health care industry and implements federal guidelines for health insurers, employers and policyholders. Between 2010 and 2014, parts of the Affordable Care Act will gradually become law, slowly expanding coverage to the more than 16 percent of Americans the U.S. Census Bureau says are without health insurance.
Mandatory Coverage
Beginning in 2014, the government will require that all Americans carry health insurance or else face steep yearly penalties. The Affordable Care Act extends more options for health care coverage, including some government options. Americans will still be able to purchase insurance from their employers, private insurance companies or apply for federally funded Medicaid. However, anyone without access to employer health benefits can also choose to purchase insurance from a competitive insurance exchange marketplace that will offer affordable prices and comprehensive coverage.
Denial of Coverage
Effective September 2010, health insurance companies can no longer deny a child health coverage due to a preexisting condition. The same law will extend to adults with preexisting conditions in 2014. Until then, the federal government provides a high-risk insurance pool for people who have been denied coverage because of a preexisting health condition. In order to qualify for insurance under the high-risk insurance pool, an applicant must be uninsured for at least six months and be denied health insurance by a private insurer.
Preventive Care
Federal law prohibits insurance companies from charging a health insurance policyholder any out-of-pocket costs regarding preventive care. Adults and children can access recommended services such as routine vaccinations, cholesterol tests, blood pressure screenings, mammograms and colonoscopies without having to pay any deductibles, co-insurance or copays.
Tax Benefits
Beginning on January 1, 2014, anyone with a family income between 100 and 400 percent of the federal poverty level will have access to tax credits to make health insurance more affordable. The credits are only available to taxpayers who do not qualify for Medicaid and who cannot purchase affordable health insurance through an employer. Furthermore, taxpayers can take advance of the tax credit, payable each month to lower the upfront premium costs of health insurance. Additionally, beginning in 2014, small businesses that offer their employees health insurance can take advantage of a tax credit for up to 50 percent of their contributions to employee health coverage.
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