Affordable care act has widened the reach of different health insurance programs. Due to its provisions more people have qualified and will be qualified for free or low cost health insurance in 2014. It has also introduced different financial assistance programs which will be directly linked with Health Insurance Marketplace with beginning of its enrolment. Many people with low income will qualify for no-cost or low-cost health insurance along with their children through Medicaid and Children’s Health Insurance Program (CHIP). Uninsured children under 18 years of age having family incomes up to $46,000 per year for a family of four will qualify for either Medicaid or CHIP. They will cover for doctor visits, emergency care, hospital care, immunization, vision, dental and ear care and prescription drugs.
Tax Credits in 2014
A new tax credit will be available with the starting of enrolment in Health Insurance Marketplace in October 2013. It will lower the monthly health plan premiums. It is unlike other tax credits, where one needs to wait until filing taxes. This new tax credit will lower the cost right away. Qualified people can avail tax credit as advance payments and can lower their monthly health plan premiums from 2014. It will make health insurance more affordable.
As soon as customers submit their application for enrolment in Health Insurance Marketplace, they will be able to see the amount of tax credit they are eligible for. After enrolment in a qualified health plan the customer can control tax credit he wants to use to pay monthly health plan premiums. The tax credit is sent directly to the insurance company to be used as a part of premium payments, it will leave customer with need to pay less out of his pocket.
Eligibility for Tax Credit
The eligibility and amount of tax credit depends on income and the family size of the applicant. The customers can check how much advance tax credit they and their family are eligible for from October 2013, when enrolment in the Health Insurance Marketplace starts.
Tax credits for Small Businesses
The Affordable Care Act has made provisions for an expanded Small Business Healthcare Tax Credit. It will start from 2014. This tax credit will cover as much as 50% of the employer contribution toward premium costs for eligible employers. These eligible employers should have low- to moderate-wage workers. They will also avail many benefits through Small Business Health Option Program or SHOP. It will give them access to tax benefits and will also offer new consumer protections.