#memberservices

We’ve pulled together some information to help shed some light on how the law -- especially some of the provisions that are just going into effect -- might impact our members in the United States. (Big thanks to our friends at Freelancers’ Union who assembled similar material.)

What is the Affordable Care Act (ACA)?

The ACA is comprehensive health reform legislation that was signed into law on March 23, 2010. While much of the law has already gone into effect, a couple of the most talked-about provisions are just now becoming reality. Specifically, on October 1, 2013, the federal government and state governments launched new health insurance exchanges, or marketplaces. Using these marketplaces, people who don’t have coverage through their employer, Medicare, or Medicaid, can compare available options and enroll in the plan of their choice. Under the law, everyone is required to have health insurance by March 31, 2014.

How much is it going to cost me?

The short answer: It depends.

The long answer: There are a number of factors that impact an individual’s cost of coverage, including age, state of residence, income level and desired coverage amount. In addition, there are new tax credits and subsidies that may help defray the cost. The Kaiser Family foundation has a handy calculator to help you figure out what you might expect to pay for insurance through the exchanges.

A few basic rules of thumb:

If you’re under 26, you’re eligible for coverage under your parents’ plan.

If you’re under 30 and you earn less than $35,000, you can get less expensive “catastrophic” insurance that provides limited coverage (only in case of a major accident).

If you’re earning $19,539-$78,120 per year, you will most likely qualify for partially or completely subsidized coverage under expanded Medicaid, subsidies or tax credits.

If you’re earning more than $78,120, you will likely be expected to cover the cost of your own insurance.

What do I need to do?

Get covered! If you already have health insurance, you’re good to go. If not, visit healthcare.gov to review your options and enroll by March 31, 2014. If you sign up before February 15, coverage can begin as soon as March 1, 2014.

If you don’t enroll, you should be prepared to pay a penalty: this year, it would cost you either 1% of your yearly household income or $95 (whichever is higher); by 2016, the penalty increases to 2.5% of your yearly household income or $695 (again, whichever is higher).

This information is proved to Peers' members for information purposes only. We're neither lawyers nor CPA, so if you have any questions about your own situation, consult a professional.

Sources: Freelancers Union, “What ACA Means For You”; Kaiser Family Foundation, ACA Summary; Department of Health and Human Services, “About the Law”