Local tax services are keeping a watch over tax credits for Obamacare. The predicted credit will average $2,700 for the next tax year. It won’t cover everybody paying for health insurance, but if you do qualify you will want to make sure this credit gets applied to your refund.
This tax subsidy will essentially reduce the overall cost for an individual’s health plan. To be eligible, a person must purchase health insurance on their own Tax Services. In other words, it cannot be part of employment benefits. Individuals who purchase their healthcare in the new marketplace without access to any other affordable coverage and fall into a low and middle class income range will qualify. For single people the approximate range would cover between $11,500 – $46,000 and $24,000 – $94,000 for a family of four. These income ranges fall into the federal poverty level. A tax credit to help offset the overall insurance cost will benefit these individuals immensely.
It is estimated that about 48% of people who currently purchase insurance in an individual market will qualify for this tax credit. With Obamacare, individuals who are not currently insured will have the opportunity for coverage. Insurance companies will not be able to deny coverage due to pre-existing conditions. Enrolling these individual will raise the cost of healthcare, but it will also be impacted by the increase of healthy young adults who never had insurance before. With an increase in premiums, the tax credit will be welcomed. Make sure you ask your tax service provider how this credit affects your personal taxes.
Insurance companies will be required to provide a minimum standard of insurance coverage. Doing so will raise premiums for those who try to purchase plans with less coverage. To help off-set this increase, out-of-pocket expenses will drop in price. Healthcare plans in the new marketplace will be required to cover a wider range of services than what is found in the current market policies. New enrollments will see a wider range of health needs as those with pre-existing conditions finally gain coverage.
Health providers will surely change their plans, options and prices once the influx of new enrollees buys into health coverage. There is only projected data as far as costs are concerned right now, but the Obamacare tax credit will work to balance the final cost for people who will struggle to afford insurance premiums and out-of-pocket expenses.