Obamacare experts, help please - Can I have care for only 9 months and avoid the tax?

[LxMxFxD4]

This topic isn't really political in nature, but figured to be safe, I'd put it here.

For me, obama care will either:

1. Raise my taxes significantly
2. Raise my health insurance cost at least 300%

I am a contractor and my company does not provide any health insurance plans. Thus I currently purchase my insurance though the open free market. I am relatively low risk and my premiums are low because of it (i'm healthy, don't smoke, don't take many physical risks, etc).

So with obama care I am now weighing whether or not to discontinue insurance completely and pay the tax. What I am trying to do here is a cost benefit analysis.

This is where it gets murky:

https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/

According to above, you have to pay the tax if you don't have an obamacare plan by March 31, 2014. If what I am reading is correct, I could defer my obamacare plan (which costs 400% of what I currently pay) until April 1. In so doing I'd have "satisfactory coverage" for 2014 and would not have to pay the tax. Naturally the downside here is that i'd be without coverage Jan1 to March 31.

Is this correct?

Why this is important:

Say my current monthly cost of insurance is X. If obama care insurance costs 400% as much, then if I could defer it until April 1, I'd then only pay for 9 months:

9 * 4X = Y where Y is yearly cost.

If I then compare Y to my annual tax increase I could do a much better CBA.

Anyone know if I can be without insurance Jan1 to March 31, 2014 and still avoid the tax?

Links would be helpful. Thanks!

 

[Carson Dyle]

Why wouldn't you just continue with your current insurer? Or are you saying that your premiums with your ensurer for the same plan are increasing fourfold?

 

[AViking]

How could your insurance go up by 400%? I've paid insurance as self employed as well as just paid it outright and with Cobra and I can't for the life of me figure out how you're getting a 400% increase.

Maybe double check those numbers before stressing too much about it.

 

[LxMxFxD4]

Thanks for the responses but i'm really just looking for an answer as to whether the 9 months of obamacare era health plan is enough to avoid the tax.

 

[LTC8K6]

Why wouldn't you just continue with your current insurer? Or are you saying that your premiums with your ensurer for the same plan are increasing fourfold?

If your current plan doesn't meet ACA specs, you can't keep it.

There are also a number of other reasons why you wouldn't be able to keep your current plan, such as your insurer deciding not to insure you.

*****

Open enrollment would supposedly close on March 31st, and wouldn't start again until later in the year. So if you don't enroll, you would then not be able to enroll until it's open again.

So it looks like you are stuck with enrolling before the 31st, or paying the fine and enrolling at your next chance.

 

[Carson Dyle]

So you do or don't currently have insurance?

Why would you need to be uninsured for three months?

 

[LTC8K6]

https://www.healthcare.gov/what-if-...lan-is-changing-or-not-being-offered-in-2014/

 

[TerryMathews]

So you do or don't currently have insurance?

Why would you need to be uninsured for three months?

Did you not read the OP? He's trying to only pay for 9/12ths coverage and still not pay the individual mandate fine.

 

[Brainonska511]

https://www.healthcare.gov/exemptions/

"How do I get an exemption from the fee for not having health coverage?"

 

[KB]

https://www.healthcare.gov/exemptions/

"How do I get an exemption from the fee for not having health coverage?"

Holy crap.

According to that website you can get a hardship exemption if:

Hardship exemptions

If you have any of the circumstances below that affect your ability to purchase health insurance coverage, you may qualify for a “hardship” exemption:
....
3.You received a shut-off notice from a utility company.



Just don't pay your electric bill, ask them to send you a shut-off notice, then pay it off. They may charge you like $50 buck to reconnect it if they had disconnected it, but its cheaper than the tax.

 

[Brainonska511]

Holy crap.

According to that website you can get a hardship exemption if:

Hardship exemptions

If you have any of the circumstances below that affect your ability to purchase health insurance coverage, you may qualify for a “hardship” exemption:
....
3.You received a shut-off notice from a utility company.



Just don't pay your electric bill, ask them to send you a shut-off notice, then pay it off. They may charge you like $50 buck to reconnect it if they had disconnected it, but its cheaper than the tax.

I bet that idea would work wonders for your credit.

 

[LxMxFxD4]

Did you not read the OP? He's trying to only pay for 9/12ths coverage and still not pay the individual mandate fine.

Pretty much. Thanks for summarizing this so well! The healthcare.gov website doesn't seem to be clear on this.

From what I read in my original link, it SEEMS that anyone not covered by March 31 will be assessed the tax. Thus, this is a sort of cut off date. So Jan thru march you can be without coverage and not pay the tax on the following year's tax return.

I may be misreading though. Thus this post.

 

[Carson Dyle]

Did you follow the link in post #9?

You may qualify for an exemption if:

You’re uninsured for less than 3 months of the year

That looks pretty clear to me.

But if you don't care about being insured, then just pay the mandate fine in 2014 if you're looking for the cheapest. $95 or 1% of your income I'd bet is far less than nine months of just about any health plan. (Unless, of course, you make big money. If you did, you wouldn't be asking how to save a few bucks.)

 

[LxMxFxD4]

Did you follow the link in post #9?



That looks pretty clear to me.

But if you don't care about being insured, then just pay the mandate fine in 2014 if you're looking for the cheapest. $95 or 1% of your income I'd bet is far less than nine months of just about any health plan. (Unless, of course, you make big money. If you did, you wouldn't be asking how to save a few bucks.)

I suggest you read my original post.

Thank you.

 

[Doppel]

I bet that idea would work wonders for your credit.

I am sure you can get cut off and then pay before they hit credit agency--I suspect in many cases thy disconnect, then send a final bill with a warning. I imagine if you pay it the there is no hit. Not positive though. But I am looking at the exemption list now and this seems a valid way out.

 

[Carson Dyle]

I suggest you read my original post.

Thank you.

Such as this part?

So with obama care I am now weighing whether or not to discontinue insurance completely and pay the tax.

 

[Brainonska511]

So with obama care I am now weighing whether or not to discontinue insurance completely and pay the tax. What I am trying to do here is a cost benefit analysis.

By the way, if you go with the 'no insurance' option, please don't use any emergency rooms, unless you're planning on paying the entire bill. I'm tired of taxpayers and insurance-carrying citizens picking up the cost of freeloaders.

 

[Hayabusa Rider]

By the way, if you go with the 'no insurance' option, please don't use any emergency rooms, unless you're planning on paying the entire bill. I'm tired of taxpayers and insurance-carrying citizens picking up the cost of freeloaders.

Not tired of having bullshit politicians though are you? Nope.

 

[boomerang]

By the way, if you go with the 'no insurance' option, please don't use any emergency rooms, unless you're planning on paying the entire bill. I'm tired of taxpayers and insurance-carrying citizens picking up the cost of freeloaders.

What are your thoughts regarding third generation welfare families?

 

[Brainonska511]

Not tired of having bullshit politicians though are you? Nope.

Please don't answer questions for me that you clearly don't know the answer to. I'm tired of that too. But there is definitely more bullshit (and frankly, deranged) politicians on one side of the aisle than the other.

 

[boomerang]

I am sure you can get cut off and then pay before they hit credit agency--I suspect in many cases thy disconnect, then send a final bill with a warning. I imagine if you pay it the there is no hit. Not positive though. But I am looking at the exemption list now and this seems a valid way out.

The religion exemption is the way to go. Imagine the stink one could raise if the .gov IRS calls you out on that.

 

[dank69]

I suggest you read my original post.

Thank you.

I suggest you post your question in the stickied thread created for this purpose.

Thank you.

 

[Spungo]

What are your thoughts regarding third generation welfare families?

this 😀

 

[Hayabusa Rider]

Please don't answer questions for me that you clearly don't know the answer to. I'm tired of that too. But there is definitely more bullshit (and frankly, deranged) politicians on one side of the aisle than the other.

Perhaps you should try not to shovel crap on someone who's circumstances you don;'t know then.

 

[LxMxFxD4]

The religion exemption is the way to go. Imagine the stink one could raise if the .gov IRS calls you out on that.

Yeah I thought about becoming a christian scientist too.. but I haven't looked into that much, really.

For anyone who thinks obamacare is legit, are you kidding? The supreme court called it a constitutional income tax. That is what it is, and all it is.

Seems my original question is answered here:

http://www.cbsnews.com/8301-250_162...ence-with-obamacare-website-despite-glitches/

"because it's important to remember people have six months to sign up"

Maybe that will be true every year? Lets hope for those of us who want to save money on this tax.