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How Health Care Reform May Impact Your Personal Situation

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Whether you need financial assistance, you are a newlywed, or a young adult, the Affordable Care Act required those who are uninsured to have health insurance by March 31, 2014 or face a tax penalty.

You may think your unique situation or persona does not fit into a perfect bucket under the Affordable Care Act (ACA), but to help sort through it all, and narrow in on what matters most, we have broken down a few personas and shared tips specific to different personal situations.

Need Financial Assistance

If you need financial assistance, under the Affordable Care Act, you may be eligible for a subsidy or advanced premium tax credit through the Health Insurance Marketplace during open enrollment or special enrollment to ease some of the financial burden of purchasing health insurance.

You can apply for insurance in the Health Insurance Marketplace for 2015 beginning November 15, 2014.

If you have a life-changing event, you may apply for health insurance and may receive a subsidy during a special enrollment period. To see if you qualify, check out the TurboTax healthcare calculator.

Also, you may qualify for Medicaid or CHIP, which you can apply and enroll for at any time of year. If your application is accepted, your coverage can begin right away. And in most cases, if you are eligible for Medicaid or CHIP, your children will also qualify.

Newly Married

If you are newly married and now have dual-income you may be able to apply for health insurance in the Health Insurance Marketplace under a special enrollment period since getting married qualifies as a life event.

You may still also qualify for lower costs in the Marketplace.

You need to apply within 60 days of your life event. When you apply during special enrollment, you will also find out if you qualify for government assistance.

Try to estimate your income accurately, and understand what happens when your 2014 income or family size changes.

If you do experience changes in income and family size, report those changes to the Marketplace as soon as possible.

If you receive an advanced tax credit make sure you file your 2014 taxes as married filing jointly in 2015.

Same-sex couples married in a state that recognizes same-sex marriages will have the same health insurance benefits as heterosexual couples under the Affordable Care Act.

Young Adults

If your parent’s health insurance covers children, you can be added or stay on their policy until you turn 26 years old. So how does that work?

This age requirement applies to job-based plans, as well as individual plans, inside or outside the Marketplace.

For enrollment, you can sign up on your parent’s plan during their private insurance open enrollment period or during special enrollment in the Marketplace.

This rule even includes children who are:

  • Married
  • Not living with their parents
  • Not financially dependent on their parents
  • Attending school
  • Eligible to enroll in an employer’s health plan

If the entire family is starting a new plan, it is typical that everyone can sign up on the same form, just make sure your parents include you on the list of people the plan covers.

For everyone

Although the deadline for the uninsured to purchase health insurance for 2014 was March 31, 2014, you may be eligible for a special enrollment period. Otherwise, open enrollment for 2015 starts on November 15, 2014.

If you have more questions about the Affordable Care Act and how it impacts you and your taxes, TurboTax has you covered. You can get answers to your questions from TurboTax Health.


5 responses to “How Health Care Reform May Impact Your Personal Situation”

  1. You can always call. You don’t have to make your purchase online, as long as you make it through the exchange.

    • Hi Jorge,
      No it’s not income. It’s a tax credit. When you file your 2014 taxes in 2015 there will be a reconciliation of your taxes. Depending on how close your actual 2014 income is to the estimate that your subsidy is based on, you may see that you get a bigger credit on your taxes or less if you estimated that you made less income than you actually did. TurboTax will be able to handle the reconciliation for you.
      Thank you,
      Lisa Greene-Lewis

  2. Why does TurboTax continue to ignore the security problems of the Healthcare.gov / exchange websites. While Halbig vs. Burwell is most likely bound for the Supreme Court, and so it will be some time before the issue of just where one can get a subsidy, either way you still need to go through one of these insecure exchanges to qualify for the subsidies. And without them, the cost of the insurance is not just unaffordable, it is out of sight, out of mind !

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