We have all heard about it, but what is it exactly, and how can it affect you?

Being a broker that deals with group insurance, I thought I would never cover the individual mandate until a good friend of mine, who had a job at a startup, didn’t have health insurance and wasn’t offered insurance. That friend has led me into writing this post; and I hope it will be able to help all those that are seeking assistance on the individual mandate.

What is the Individual Mandate?

The individual mandate is a mandate that was brought upon by the health care reform we know as the Affordable Health Care Act (or Obamacare, which is a lament term for the ACA because it was a reform spearheaded by President Obama). The mandate’s main goal was to incentivize citizens into purchasing health care because health care costs are one of the main causes of personal bankruptcy, and the government wanted to help alleviate that problem. The incentive the ACA brought to persuade individuals to purchase the health insurance is a tax penalty.

What type of insurance do I have to get to not get penalized by the individual Mandate?

You must purchase a medical health insurance policy to dodge the penalties imposed by the individual mandate. The medical policy must be Affordable Care Act (ACA) compliant, so generally any new health care plans on the market these days. They can be purchased both private and public.

Broker Tip: Ancillary products, such as life insurance, dental, vision, etc, do not count as health insurance. While they are great benefits to have, they will not help you out with the individual mandate.

Should I purchase private or public health insurance to cover the Individual Mandate?

This question is definitely not cookie cutter, and both private and public health care offer incentives. However, recently some of the subsidies that were given to those that purchased public insurance were taken away, which shocked the nation. Just make sure, if you do go for public insurance, you can qualify for the subsidies, or you may end up owing the government money and perhaps having a less comprehensive plan than a private plan.

How much will the tax penalty be?

I actually wrote an article regarding the major Affordable Care Act reforms, which can be some by clicking HERE. It goes over the individual mandate and the penalties you can incur by not purchasing insurance for yourself and your family (generally, dependents).

Are there any exceptions to the individual mandate?

There are indeed exceptions to paying the penalty which are laid out quite well at healthcare.gov’s exemptions page, which you can go to by clicking HERE.

Reference: “How Do I Qualify for an Exemption from the Fee for Not Having Health Coverage.” HealthCare.gov. N.p., n.d. Web. 17 June 2014.

Additional Disclaimer – Although I am an Insurance broker and a professional in the field, the Health Care laws are ever changing, especially in the age of the Affordable Health Care Act, and the laws, information, opinions, or understandings that I have wrote about may be obsolete by the time you come across them and I take no legal responsibility for what actions you may or may not take because of it. To keep yourself safe, please seek updated professional advice, because changes are happening and I would like to keep everyone safe from any misleading or dead information. Please check out the “Terms and Conditions” page for more information and/or bookmark my blog for upcoming changes and updates to the ACA. Thank you for reading, and have a great day!