Repaying Health Insurance Benefits
There are good reasons to notify your employer of a divorce once its final. If you dont, you could face repercussions.
First, you could be liable for any benefits the health plan pays for your ex.
If you dont tell them and there is a claim, the insurance company can try and recover the cost of the claim from you, Tassey says.
Legally, you would have to reimburse your health plan.
Your ex-spouse will become liable for all medical expenses from the date of the divorce unless he or she opts for continued coverage through COBRA, Jurney says.
Second, there could be tax implications. An exs coverage cant be paid for with pre-tax dollars.
The value of the health coverage provided to the ex-spouse is taxable to the employee, to the extent it is not paid for with post-tax dollars, says Sonkin.
Health Insurance For : What You Need To Do Now During Open Enrollment
Whether you buy it on the national ACA Marketplace, or get it from your job or the government, now is a key time to check and choose your options.
In just a few short weeks, well ring in a New Year and a new decade. But before then, you have big games to watch, holiday celebrations to attend, gifts to buy, and winter weather to prepare for.
Oh – and health insurance to think about.
In fact, the choices you make in the next few weeks could affect your health and your wallet for all of 2020 and beyond.
If you have Medicare coverage, you have until December 7 to review and change your coverage for 2020.
If you get insurance through your job, you may have already chosen your plan for 2020, but nows the time to plan ahead for what costs youll face because they may go up.
If you buy your own insurance on healthcare.gov or another site, you have until December 15 to review your options and change plans if you want.
If you have coverage through the Healthy Michigan Plan Michigans Medicaid expansion program for low-income people you should get familiar with new requirements that might affect you next year.
If you dont have health insurance right now, this is the time to find out what you qualify for, to avoid being caught uncovered if your health changes next year.
Can Your Employer Cancel Your Health Insurance
As stated above, the ACA requires employers of a certain size to provide access to ACA-compliant health insurance or face a tax penalty. So, yes, they could technically cancel your health insurance coverage, but it may not be in their best interest if the law requires them to provide access to it.
Your state also has laws regarding employer coverage. If you have questions or concerns regarding health insurance and your workplace, contact your companyâs HR representative or your stateâs department of labor.
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Do I Need To Show Proof Of Health Insurance For My Taxes
Youll need to show documentation that you had health insurance in 2018 to avoid paying a penalty. Depending on how you get your insurance, this documentation will be one of the following: Form 1095-A , Form 1095-B , or Form 1095-C . Past 2018, you no longer need to show proof of health insurance on your taxes.
However, if you received a federal tax credit, you will need to file your tax returns with the right documentation. Form 1095-A is provided to anyone with Marketplace coverage. Your insurance company will issue Form 1095-B, listing everyone who was covered and when during a calendar year. You can also submit this form as part of your documentation when preparing your taxes. Form 1095-C is provided to employees by employers who provide health insurance benefits, when an employee opts into those benefits.
If you want to be extra careful you can keep documentation that shows you had coverage for 2018 and earlier. This can include insurance cards, explanation of benefits , or statements from your insurer. This may also be a W-2 or payroll statements reflecting health insurance deductions.
Grab our free guide to see what you need to know about Marketplace insurance and your taxes.
Can My Health Insurance Cover My Girlfriend
To sum it up
- Health insurance generally only covers your spouse
- You may be able to get your girlfriend on the policy if you are in a common-law marriage
- Without common-law marriage or legal marriage, you cant add your girlfriend to your health insurance policy,but you can help her find affordable coverage of her own using comparison sites and free quotes
Health insurance coverage these days is more vital than ever as health costs continue to go up. However, it has actually become more difficult for some people to get health insurance coverage.
Many jobs do not offer health insurance coverage as part of the benefits package. This is because the cost to employers is extremely high and continues to go up. All employers will with 50 or more full-time employees are required by the Affordable Care Act to offer health insurance benefits.
However, most businesses in the United States have fewer than 50 employees and are not required to offer health insurance benefits. If you find yourself working for one of these companies and you did not have health insurance coverage, you may want to get on your boyfriends or girlfriends coverage.
Can you add your girlfriend to your health insurance? There is a very specific set of criteria that must be met, and they both require a marriage of some form.
If you arent married, you can help your girlfriend get health insurance and getting free quotes!
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California Residents With Qualifying Health Insurance And New Penalty Estimator
Effective January 1, 2020, a new state law requires California residents to maintain qualifying health insurance throughout the year. This requirement applies to each resident, their spouse or domestic partner, and their dependents.
To reach uninsured individuals, Covered California will send letters to approximately 2.1 million households beginning January 2, 2020. This letter will let individuals know about the new state Minimum Essential Coverage Individual Mandate and share that they can go to Covered California to:
- Shop for qualifying health insurance.
- Get information about financial help to lower the cost of qualifying health insurance.
- Get information about exemptions and the California Individual Shared Responsibility Penalty for failure to have qualifying health insurance coverage or an exemption.
- Individuals who fail to maintain qualifying health insurance will owe a penalty unless they qualify for an exemption. Covered California and the Franchise Tax Board each administer exemptions for qualifying individuals.
New Jersey Individual Mandate
- Effective date: January 1, 2019
- Requires individuals and their dependents have ACA-compliant health insurance
- Imposes a penalty on New Jersey residents who go without health insurance but can afford it
- Provides state subsidies to help lower income residents afford health insurance
The New Jersey penalty, otherwise known as the Shared Responsibility Payment, is based on household income as well as family size. However, the penalty is capped at the cost of the average statewide premium for bronze health insurance plans.
According to NJ.gov, the minimum tax penalty for individuals is $695 and the maximum is $3,012 for the 2020 tax year. For a family of five with a household income of $200,000 or below, the minimum tax penalty in 2020 is $2,351 and the maximum is $5,074. If you are not required to file a tax return for 2020 in New Jersey, then you are exempt from paying this fine.
New Jersey law has exemptions in certain situations. For example, if you cant afford the health plans available to you through the Marketplace or your employer, you may be eligible for an exemption. Plan premiums must be more than 8.05% of your household income for that year. There may also be exemptions for religious belief or hardship.
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Absence Of Medical Services
Contrary to popular belief, health providers are not required by law to provide medical services to individuals without insurance. Only emergency departments are legally bound to provide care.
The Transamerica Center for Health Studies released a report revealing that 62% of Americans have been diagnosed with a chronic health condition, such as high blood pressure, high cholesterol, or being overweight or obese. The study also found that only 56% of uninsured Americans could afford to pay for their routine health expenses.
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Short Term Health Insurance
During the COVID-19 pandemic, many people have gone through transitional periods and have had a lapse in health care coverage. Short-term health insurance can be a temporary option to protect you from expensive medical bills. You are eligible for short-term coverage if you:
- Change jobs
- Other specific instances
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Short Term Medical Insurance
Short term medical insurance is not ACA-qualifying coverage. These plans provide less coverage than major medical plans and are not guaranteed issue â and their premiums reflect that as they are typically lower than ACA plans.
Short term plans are intended to provide temporary coverage for unexpected illnesses and injuries that require a visit to the hospital while youâre between jobs and major medical plans.Theyâre not intended to be a long-term coverage solution.
You cannot get subsidies or tax credits for these types of plans and since theyâre not guaranteed issue you may be denied coverage or pay more based on your health status.
Short term health plans are available from 30 to 364-days depending on your state but theyâre not available in all states. Short term plans are not subject to the annual open enrollment period, so in most states that offer them you can apply for short term health policies 365 days a year. If youâre approved there is no waiting period you can begin coverage the next day.
The best way to find out if these plans are available in your area and how much it might cost you is to get a quote.
Is Health Coverage Still Required
Starting with the 2019 coverage year , there is no longer a tax penalty or individual mandate for not having health insurance.
Learn more about the individual mandate for 2014-2018 on HealthCare.gov and the IRS websites. See below for information about exemptions for the individual mandate for 2018 and earlier.
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How Do I Choose Domestic Partner Insurance
Choosing health insurance for you and your partner is like buying any type of health insurance. You will need to research your options, including premium costs, deductibles, and level of coverage. This is true whether you are buying private insurance from, getting a plan through the Marketplace, or picking a plan offered through your work.
If the health plans offered through your job do not cover partners unless you are married, you may want to look into buying private insurance.
Taking the time to research and review a health insurance policy will help you get the most out of your plan. Be sure to look up any terms you dont understand. You can also call customer service or talk to your HR department if there is anything you have questions about.
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How Many Americans Are Uninsured
The number has fluctuated over the past few years, but the number of Americans without insurance has generally been trending lower since the enactment of the Affordable Care Act . Put simply, the ACA has made it much easier for uninsured Americans to obtain health insurance. In 2010, when the ACA was enacted, 48 million Americans were without health insurance. In 2018, that number had decreased to 30 million.
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Va And Other Health Insurance
If you have other forms of health care coverage, such as a private insurance plan, Medicare, Medicaid or TRICARE, you can continue to use VA along with these plans. Remember: it is always a good idea to inform your VA doctor that you are receiving care outside of VA. This helps your provider to support coordinated health care that is safe, appropriate, and effective.
What To Do Now If You Have Insurance Through Your Job:
Even if youve had health coverage for years, this is the time to look at the fine print of the plan or plans available to you during your employers Open Enrollment. Even if your enrollment period already ended, you should make sure you understand the plan youll be in.
More and more employers now ask employees to share a bigger chunk of the cost of their health care. Even if your monthly premium cost didnt change much, you may discover that you now have a bigger deductible that you have to pay before your insurance coverage kicks in.
You may have higher co-payments for drugs and doctor visits, or restrictions on which clinics, hospitals and pharmacies you can go to. And you may be able to start socking away cash in a Health Savings Account to prepare for out-of-pocket costs in 2020. If your employer offers a Health Savings Account, be sure to set it up!
If you already have doctor appointments, operations, procedures or scans scheduled for 2020, now is the time to double-check that the clinic or hospital will still take your insurance at the time you arrive, and that all the providers who will care for you actually participate in your insurance plan. If they dont, you should find a different site or provider thats in network.
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Can Straight Couples Get Domestic Partnerships
Straight couples may be allowed to register in domestic partnerships in some states. For example, California law changed in recent years to allow straight couples to pursue this option.
Other states might allow the option, but only if one or both members of the couple are at least 62. That is because 62 is the age at which couples can file for Social Security benefits, and in some cases, couples can get higher Social Security benefits if they remain unmarried.
Washington Dc Individual Mandate
- Effective date: January 1, 2019
- Requires individuals and their dependents have ACA-compliant health insurance
- Imposes a penalty on residents who go without health insurance but can afford it
- Provides exemptions to the tax penalty for circumstances such as financial hardship, pregnancy, or eviction
Individuals who go without qualifying health coverage for a full year and dont file for an exemption may owe a tax penalty. The penalty amount is either 2.5% of the gross family household income or $695 per individual and $347.50 per child youll pay whichever amount is greater.
According to dchealthlink.com, the maximum penalty for not having coverage in DC is based on the average premiums for bronze level health plans available on DC Health Link. In 2020 this amount is $3,448/year per person and, for households with more than one person without coverage, it is multiplied by the number of people in the household without coverage up to a maximum of five household members. So, potentially, a household of five or more that went the entire year without health coverage would have a penalty cap of $17,240 in 2020.
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You Va And The Internal Revenue Service
The Affordable Care Act requires most U.S. taxpayers to declare they have minimum essential health coverage on their annual federal income tax return. In December, VA will begin sending out letters notifying all enrollees and beneficiaries of their VA health care coverage for the 2020 year. Enclosed with this letter will be IRS Form 1095-B Health Coverage, which includes details about your VA health care coverage for the 2020 calendar year. You will need this form to complete and report your coverage on your 2020 income tax return. Please keep IRS Form 1095-B for your records. The VA will also provide IRS Form 1095-B to the Internal Revenue Service for every Veteran who received health care coverage through VA in calendar year 2020, as required by law. If you or your dependents had a gap in coverage that lasted 3 consecutive months or more, then you may have to pay what is called the individual shared responsibility payment or penalty. Your 1095-B will reflect which months you did not have health insurance, if applicable. Please visit for more information on the IRS website for Questions and Answers on the Individual Shared Responsibility Provision. Expect to receive your 1095-B form by mail on or before March 2, 2021.
Why Do I Need Health Insurance
Its important to have health insurance even if you are young and in good health, because accidents and unexpected illness can have a serious impact on your finances. For example, a broken leg can cost you thousands of dollars, even if no surgery is needed. In addition, most health insurance plans give you access to preventive serviceslike shots or screening testsfor free.
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How Big Were The Penalties
The IRS reported that for tax filers subject to the penalty in 2014, the average penalty amount was around $210. That increased substantially for 2015, when the average penalty was around $470. The IRS published preliminary data showing penalty amounts on 2016 tax returns filed by March 2, 2017. At that point, 1.8 million returns had been filed that included a penalty, and the total penalty amount was $1.2 billion an average of about $667 per filer who owed a penalty.
Although the average penalties are in the hundreds of dollars, the ACAs individual mandate penalty is a progressive tax: if a family earning $500,000 decided not to join the rest of us in the insurance pool, they would have owed a penalty of more than $16,000 for 2018. But to be clear, the vast majority of very high-income families do have health insurance.
Today, the median net family income in the United States is roughly $56,500 For 2018, the penalty for a middle-income family of four earning $60,000 was $2,085 . This is far less than the penalty a more affluent family would have paid based on a percentage of their income.
The penalty could never exceed the national average cost for a bronze plan, though. The penalty caps are readjusted annually to reflect changes in the average cost of a bronze plan:
The maximum penalties rarely applied to very many people, since most wealthy households were already insured.