The good news is that you will be able to get health insurance regardless of your pre-existing conditions, more people will have health insurance, and people who don't pay for their health costs will have to take personal responsibility.
However, taxpayers who don't have health insurance by 2014 for themselves and their dependents will pay a penalty as part of their tax returns. Here's how the "individual mandate" will work now that the Supreme Court has upheld it as part of Congress's taxing authority.
You won't have to pay the penalty if:
- You are not required to file a federal tax return.
- Your health insurance premiums exceed 8 percent of your household income
- Obtaining coverage would be a hardship for you, as determined by the US Department of Health and Human Services
- You have a religious exemption
- You are incarcerated
- You are an undocumented alien
Otherwise you must have a "minimum level" of health insurance, such as Medicare, Medicaid, CHIP, employer-sponsored plans or coverage you bought on your own. If you have no health insurance, taxpayers will owe a tax penalty, calculated in part on your adjusted gross household income, for each month that you don't have coverage.
There will be a minimum penalty of $95 for 2014 and a cap equal to the national average health insurance premium for a "bronze" level of coverage.
For the details, see page 81 of the PDF file
Guest Post written by Larry Bodine, Editor in Chief at Lawyers.com. Posted June 28th, 2012 at 1:45pm PST