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Health Insurance and Your Taxes

If you purchased health insurance coverage, you’re already enjoying the peace of mind that comes with knowing you’re covered if you or a family member gets sick. This year, you also can enjoy a second benefit: knowing that you will not be required to pay a penalty to the government when you file your taxes.
But what if you only had coverage for part of the year, or received financial assistance from the government to help lower the cost of your monthly payments? Here are eight things you need to know about health insurance and your taxes.

1. What is the individual mandate and how does it affect my taxes?

The individual “mandate” (also known as the individual shared responsibility provision) requires everyone who can afford health insurance to purchase coverage or pay a tax penalty. If you can afford coverage but choose not to purchase it, the penalty will apply unless you qualify for a health coverage exemption. The amount of the penalty for failing to have coverage varies.

2. What if I only had coverage for part of the year in 2014?

According to the Centers for Medicare & Medicaid Services, you are not required to pay a penalty if you had healthcare coverage for more than nine months in 2014 or are eligible for an exemption. If you previously received an exemption or want to apply for one when filing your taxes, you will need to complete Form 8965.

3. How do I know if I qualify for a health coverage exemption?

Most people who can afford health insurance but choose not to purchase coverage will be required to pay the penalty. However, there are a variety of reasons someone might be eligible for an exemption, including hardship, living abroad or having an income below the level that requires you to file a tax return. You can find more information about exemptions here.

Read the full article here.

Contact Steven G. Cosby, MHSA with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.

The Obamacare Change That’s Unpopular in Blue States

State-run health insurance exchanges are squabbling with the Obama administration over who should be responsible for deciding who deserves a free pass from Obamacare’s unpopular individual mandate. At least seven state exchanges have sharply criticized an administration proposal that would shift responsibility for determining eligibility for mandate exemptions onto the state-run marketplaces in the 2015 enrollment period, scheduled to open Nov. 15. The states warn they don’t have the technical ability or funding to handle requests from people seeking a pass from the Affordable Care Act’s requirement to obtain insurance coverage or pay a fine. Some states have urged the Department of Health and Human Services to dump the proposal, while others are asking to delay its implementation by at least a year.

Read full article here.

Contact Steven Cosby with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.

How To Get The Most Out Of Your Health Savings Account

Here are eight tips for getting the most out of your Health Savings Account:

1. Extracting the money from your HSA is as simple as using a checking account. You can receive blank checks, a debit card or both. The debit card may be used for online purchases.

2. You can use an HSA to pay for medications only if you have a prescription for them, including those sold over the counter. The exception is insulin; it doesn’t require a prescription. This rule was part of the Affordable Care Act, also known as Obamacare.

3. Nontraditional medical services, like acupuncture and massages, can qualify as legitimate HSA expenses. They’ll need to be permitted by your high-deductible health plan and you must have a prescription from your doctor, Grossmiller says.

4. Avoid the steep penalty for using your HSA for non-medical expenses before 65. “If you pull the money out before then for anything other than reimbursable expenses, there’s a 20% tax on the amount of the withdrawal,” Huber says.

5. If the IRS audits you about your HSA before age 65, you’ll need to prove the account was used for qualified expenses. To protect yourself, keep receipts for all out-of-pocket health costs and be sure the bills you pay with an HSA meet the IRS test for qualified medical expenses, Grossmiller says.

The complete rules about qualified medical expenses are in IRS Publication 969, but keep in mind that you can’t pay for health insurance premiums or cosmetic surgery out of an HSA.

6. Once you turn 65, you can no longer contribute to an HSA. But you can make penalty-free withdrawals.

7. An HSA is especially worth considering if you’re already maxing out your 401(k)-type plan and IRA.“It’s another avenue to fund a retirement account,” Grossmiller says.

8. Be careful about how you’ll invest your HSA. Employees are typically given an assortment of investment options, much like 401(k)s.

You probably should avoid putting all the money into stocks or equity mutual funds, due to the volatility of the market. “Since the purpose of an HSA is to pay for medical expenses, it is important to balance risk, especially in newer accounts that will have lower balances,” Grossmiller says. The last thing you’ll want is a medical emergency and no money to pay for it.

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Employee Benefits Update: The Impact of the Supreme Court’s DOMA Decision On Your Employee Benefit Plans and Policies

Executive Summary
The Supreme Court in United States v. Windsor recently struck down Section 3 of the Defense of Marriage Act, effectively creating a patchwork of different state laws that determine who qualifies as a “spouse”. This ruling will result in significant changes to the administration of employer-sponsored retirement plans, health and welfare plans, payroll practices, and FMLA policies. However, significant questions also remain unanswered until the government issues guidance for the employer community.

What You Should Do
Review the charts in this Employee Benefits Update, and the checklist of next steps, so that you can determine how the Supreme Court’s decision is likely to change your benefit plans and policies, as we wait for further guidance from the government about the details of how these changes will be implemented.

Click here for full update for regarding the recent DOMA decision and how it may impact your employee benefit plans and policies.

Source: Isler Dare, P.C.

Breaking: House Votes to Delay Health-Law Mandates

House lawmakers on Wednesday voted to approve two separate bills amending portions of the Affordable Care Act, the latest moves by the GOP to try to throw up hurdles to the Obama health law.

The first bill would codify the year-long delay to the obligation on companies to provide health care coverage to their workers from next year.

The second would delay a similar obligation on individuals to purchase health-care insurance.

The vote on the first bill delaying the employer mandate passed 264-161, with 35 Democrats joining Republicans in supporting it. The vote on the second legislation was approved by a vote of 251-174. On that measure, 22 Democrats sided with the majority.

Click here to read full article

Tag: individual mandate

Health Insurance and Your Taxes

The Obamacare Change That’s Unpopular in Blue States

How To Get The Most Out Of Your Health Savings Account

Employee Benefits Update: The Impact of the Supreme Court’s DOMA Decision On Your Employee Benefit Plans and Policies

Breaking: House Votes to Delay Health-Law Mandates

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