Why is the government mandating

25-Sep-2017 14:19

One of the more controversial parts of the Affordable Care Act is the issue of a health insurance mandate – the requirement that since 2014, all Americans must have healthcare coverage.

The vast majority of people in this country have health insurance through work or a public plan such as Medicare and Medicaid, and that was already the case prior to 2014 when the individual mandate took effect. citizens and legal residents have been required to have "minimum essential coverage," which includes coverage through your job, a government plan (such as Medicaid, Medicare, Veterans Administration, and the Armed Services), or a health plan you have purchased on your own.

And if your income doesn't exceed 250 percent of the poverty level, there's also a subsidy available to lower your out-of-pocket expenses.

The subsidy for out-of-pocket costs is paid directly to your health insurer.

If the cost of the lowest-priced Bronze plan in your area is more than 8.16 percent of your income in 2017 (after the subsidy, if applicable, is taken into consideration), you'll be eligible for an exemption based on coverage being unaffordable. All individual market plans became guaranteed-issue as of January 2014.

Enrollment is limited to the annual open enrollment window that starts each fall on November 1, or a special enrollment period triggered by a qualifying event, but insurers no longer ask about medical history when you apply for coverage.

This amount is the minimum yearly income that an individual or family needs to be able to provide for basic needs such as food and housing.

The 5 flat rate minimum (which can be up to three times that much if multiple family members are uninsured) will be indexed for inflation each year, starting in 2017.They do not deal with deductibles, copays or high premiums. While cable and satellite users should receive a picture without any issues, those that use an antenna to receive free television broadcasts may need a separate digital TV tuner.For higher-income households, the penalty is 2.5 percent of income, which will continue to be the case (you pay whichever penalty is higher—the flat rate, or the percentage of income).

You may be eligible for an exemption or you may be able to get help paying for health insurance it if your income is low.But the premium subsidy can either be paid directly to your insurer, or you can opt to claim it on your tax return.

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