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Individual Health Insurance Question & Answers

2013 December 28
by Sarah Fields

David asks…

will i have to buy individual health insurance starting 2014?

I have a job I am paying Medicare tax. Is it still mandatory for me to buy individual health insurance starting 2014?
@Flower Is the state insurance exchange cheap?

Sarah Fields answers:

Paying payroll taxes (for Medicare, Social Security, etc.) doesn’t mean you won’t be required to purchase health insurance on your own in 2014. However, you won’t be required to purchase coverage on your own if you make below 133% of the federal poverty level, though you may qualify for Medicaid in that case.

If you do not have health insurance through an employer and do make more than 133% of the federal poverty level, you will fall under the “mandate” and be required to purchase health insurance on your own in January next year. However, you may qualify for government-subsidies to help make it more affordable. If you earn between 133%-400% of the federal poverty level (around $85,000 for a family of four in 2012 dollars), you will qualify for subsidies that will reduce your annual cost for health insurance to between 4 percent and 9 percent of your adjusted gross income.

Starting in 2014, if you do fall under the mandate and fail to obtain health insurance, you’ll face a tax penalty on your federal tax returns.

Carol asks…

Can I reimburse employee for individual health insurance policy premium?

I have a side business where I employ 1 employee. I don’t work at the business full time. Because it’s only 1 employee I couldn’t get group health insurance so he purchased an individual health insurance policy. My question is: can I reimburse him the cost of the policy and write it off as an expense? Do I need HRA for that or anything else? The business is in NJ. Thank you very much!

Sarah Fields answers:

Yes you can use it as a tax write off.

Paul asks…

Anyone had difficulty buying individual health insurance because of their history?

I’m going to need to buy individual health insurance and I’m sweating it out that I might get turned down.

Sarah Fields answers:

How can any reasonable American defend such a system?

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