If you need to buy health insurance to comply with the Affordable Care Act mandate that most Americans get coverage or face a tax penalty, you may want to begin your search in the Health Insurance Marketplace that offers discounted plans.
The open enrollment period to purchase plans in your state and federally operated Marketplace runs from Nov. 15, 2014 to Feb. 15, 2015.
Here’s what you’ll find:
Discounted health insurance
The Marketplace is the only place you can apply for discounted coverage with government assistance to defray the costs of health insurance. These savings can add up whether you buy individual or family coverage.
Depending on your income and family size, you may be eligible for tax credits toward the cost of monthly premiums and government subsidies to help pay for out-of-pocket expenses such as deductibles, coinsurance and co-payments.
Qualified health plans
Policies sold in the Marketplace are considered “qualified health insurance plans” as required by the Affordable Care Act, so you won’t be subject to a tax penalty.
Marketplace plans are guaranteed to include a package of essential health benefits and cover at least 60 percent of the total cost of your medical services. These requirements apply to plans sold outside or inside the Marketplace.
You can purchase health insurance in the private market, but you won’t be eligible for discounted coverage. To avoid a tax penalty, you’ll also need to make sure these plans comply with the law’s essential health benefits and minimum coverage requirements.
As with all tax laws TurboTax is up to date and has you covered. If you have more questions about open enrollment and if the Affordable Care Act impacts you and your family go to TurboTax Health for answers.