The Individual Mandate went into effect January 1, 2014. Compliance for this mandate requires that non-exempt U.S. citizens and legal residents must purchase and maintain “minimum essential coverage” which includes:
• Individual market plans offered within a state, whether through or outside the Exchange
• Eligible employer-sponsored plans
• Grandfathered individual or group coverage
• Government sponsored programs
• Other coverage deemed acceptable by HHS in accordance with Treasury
The annual penalties for non-compliance will be assessed in the greater of the following:
• 1% of taxable income or $95 per adult, $47.50 per child in 2014 (up to $285 per family)
• 2% of taxable income or $325 per adult, $162.50 per child in 2015 (up to $975 per family)
• 2.5% of taxable income or $695 per adult, $347.50 per child in 2016 and thereafter ( up to $2,085 per family)
There are a couple of exceptions to this (excluding hardship exemptions) through the HHS. First, employees with employer-sponsored coverage do not need to comply until the start of the employer’s 2014 plan year. The second exception involves enrollment in the Exchange. As long as the individual is enrolled in a plan by March 31, 2014 they will not be assessed a penalty, even if the coverage is not effective until May 1, 2014.
If you would like more information about the Individual Mandate, the Exchange (Marketplace), or Innovative’s own Private Exchange please Contact Us.
