Self-Employed
Implementation of the Affordable Care Act occurs in stages, with many of the
reforms and requirements taking effect in 2013 and 2014. Some of the provisions
that may impact self-employed individuals include:
- Individual Insurance Marketplaces
Coverage through new competitive health
insurance marketplaces for individuals and small businesses will be in place
January 1, 2014 with open enrollment beginning October 1, 2013. The individual
health insurance marketplaces will offer a choice
of four levels of benefit packages that differ by the percentage of costs the
health plan covers. Individuals and the self-employed may qualify for individual
tax credits and subsidies on a sliding scale, based on income. Increased access
to quality, affordable health care will make it easier for potential
entrepreneurs to go out on their own instead of staying at larger firms simply
because of "job lock".
- Coverage through Medicaid Expansion
Each state operates a Medicaid program that
provides health coverage for lower-income people, families and children, the
elderly, and people with disabilities. The eligibility rules for Medicaid are
different for each state, but most states offer coverage for adults with
children at some income level. In addition, beginning in 2014, most adults
under age 65 with individual incomes up to about $15,000 per year will qualify
for Medicaid in every state. To learn more about your state Medicaid program and
other options available to you, use the insurance and coverage finder or visit Medicaid.gov.
- Find Insurance Options
Find and compare health plans using this interactive tool provided by the U.S. Department
of Health and Human Services.
- New Medicare Assessment on Net Investment Income
Beginning January 1, 2013, a 3.8% tax will be
assessed on net investment income such as taxable capital
gains, dividends, rents, royalties, and interest for taxpayers with Modified
Adjusted Gross Income (MAGI) over $200,000 for single filers and $250,000 for
married joint filers. Common types of income that are not investment income are
wages, unemployment compensation, operating income from a non-passive business,
Social Security Benefits, alimony, tax-exempt interest, and self-employment
income.
- Timeline of Provisions
The Affordable Care Act timeline provided by the U.S. Department of Health
and Human Services includes the next steps you can take to implement the
provisions.
No comments:
Post a Comment