You may wonder why it is going to be required for most United States citizens to have health insurance coverage as of January 1st, 2014. The reason everyone needs insurance coverage is to ensure that you and your family have the necessary protection in the event of an accident or illness. The out-of-pocket costs for doctor’s visits, lab tests, prescription medications, emergency room trips, and hospitalizations are not cheap. Many people often end up going into debt and struggling financially as a result of not having family health insurance coverage.
While you might not think you are going to be able to have the money to pay for family health coverage, you are wrong. Under the Affordable Care Act (ACA), the costs associated with buying insurance have resulted in much lower premiums. The purpose of the ACA is to make paying for insurance affordable for everyone, regardless of age, income or marital status. In order to offset the premiums you would normally pay, the ACA has included different incentives, such as tax credits, cost-sharing subsidies, and others, to reduce the amount you are required to pay.
For example, for a married family with two children under the age of 21, earning a combined income of $35,000, the premium for a Silver Plan without any incentives, is estimated to be $856. However, with your estimated tax credit of $742, your premium for the Silver Plan is only $114. The Silver Plan covers all 10 of the Essential Health Benefits and pays for 70 percent of related expenses. Further, the incentives are able to be applied immediately to your premiums, so you do not have to wait until filing your tax return to obtain your credits.