Avoiding the ACA tax penalties
Now in our third year of the Affordable Care Act, the open enrollment period is finishing up for the 2016 plan year. This year we have seen a lot of changes and some increase in provider participation for the individual and family plans. It is still important to make sure that if you are looking to make a change in plans, that you review your potential plans network of providers. Choosing a plan that your provider does not accept, does not justify a special election period.
All applications will need to be submitted to the plan no later than January 31st. This will give you a March 1st effective date and also keep you from be penalized by the IRS. The penalty for the 2016 plan year increase to 2.5% of your income, or $695.00 per adult and $347.50 per child, to a maximum amount of $2,085.
Business with 50 or more employees will also pay penalties for not offering an affordable plan.
If you have questions regarding plan options for individual, groups reach out to a licensed agent, there is no fee to use an agent to be your resource and assist you through the complicated health care industry.