Affordable Care Act FAQS


The Affordable Care Act.  Yes!  That’s right I said it.  The AFFORDABLE CARE ACT which is also known as the Patient Protection and Affordable Care Act but for most it has been referred to as “Obamacare.” Whatever you choose to call it, it’s all the same.

I know everyone is sick and tired of hearing about this so I’m going to keep it short and simple by answering the most frequent questions from individuals. I mean that’s what everyone is worried about right – how will “Obamacare” affect my 2014 tax return? Here is a list of questions that everyone is asking.

1.) What happens if I can’t afford health care coverage?

You may get financial help to assist in paying for coverage, care, or both. The amount is based on your income, where you live, other coverage that may be available to you, and if you are a U.S. citizen or lawfully present in the U.S.
You can find out if you qualify for reduced premiums and reduced cost sharing through the Health Insurance Marketplace. Here are some general income guidelines that might be used by the government to see if you qualify and how much help you would receive.

If you’re single, you could qualify if you make less than $45,960 (or if you live in Hawaii, less than $52,920).
For couples, you could qualify if you make less than $62,040 (or if you live in Hawaii, less than $71,400).
For a family of 4, you could qualify if you make less than $94,200 (or if you live in Hawaii, less than $108,360).

2.) What is the penalty for not having health care in 2014?

If you’re required to have coverage, you’ll be charged a tax penalty by the government if you go without insurance for 3 consecutive months or longer. You won’t be charged the tax penalty if you are uninsured for less than 3 consecutive months. The penalty is $95/per adult and $47.50/per child for the first year or 1% of your AGI, whichever is greater (Maximum is up to $285 per family). If your household income is above 400% of the federal poverty level then you may be exempt from paying the penalty or if insurance in your area cost more than 8% of your taxable income (taking into account employer contributions or tax credits).

3.) How will “Obamacare” affect my HSA (Health Savings Accounts)?

1.) The law eliminated one’s ability to use money in their HSA account to buy over-the-counter drugs

2.) The big change is that the law increased the penalty for withdrawing funds from your HSA before you reach age 65. The early withdrawal penalty increased from 10% to 20%.

4.) Can I keep the plan I already have?

That will depend on when your current plan first went into effect – what we call the “effective date” of your plan.
If your plan has an effective date before March 23, 2010, you may have what’s called a “grandfathered” health insurance plan, and you may have the option to stay on that plan or change to one of the new metallic plans.   But, your plan will lose its “grandfathered” status if your insurance company makes significant changes to your plan that reduce its benefits or increase its costs (which you may want to ask before they go changing things to trick you into buying another health plan that you didn’t need) So please get educated on what you need.
If your plan has an effective date between March 24, 2010 and January 1, 2014, it is a “non-grandfathered” plan and it may have to be converted to a new metallic plan in 2014.
Even if your plan’s renewal date is later in the year, it may need to be converted to a metallic plan by no later than March 31, 2014 or earlier.
But, in some instances your insurers may make the conversion as early as January 1, 2014.
If your plan is purchased with an effective date of coverage that is after January 1, 2014, that plan would need to have one of the metallic benefit levels.

5.) What will happen if my application gets declined?

Insurance companies are NOT allowed to decline your application for health insurance because you have a pre-existing medical condition, or for any other health-related reason. Which started January 1, 2014.

We’ll I hope this answered some questions. We also have a page dedicated to this. Just click HERE to be directed. I’m here to make your life a little less complicated. Feel free to send me a question at

Have a wonderful and healthy day!


2 thoughts on “Affordable Care Act FAQS

  1. Hey Debbie,

    This is great information, thanks so much for laying it out for everyone, step-by-step, and for being so precise with your detail! You rock!

    Big hugs

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