Thursday, July 7, 2016

Obamacare insured an extra 16 million, but its tax paperwork is a nightmare - MarketWatch

Obamacare insured an extra 16 million, but its tax paperwork is a nightmare - MarketWatch





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Full-time workers at large companies who get health insurance through their employer will receive a 1095-C. Form 1095-B provides proof from a health care provider that you have coverage. And Form 1095-A shows that you bought health insurance from one of the Health Care Exchanges — or marketplaces. Recipients of the forms needn’t fill them out.



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In a bizarre twist of the law, unless the small employer (fewer than 25 to 50 employees) has a formal insurance program in place, they are no longer allowed to pay the premiums for their employees directly. The penalties are hefty if they do. To continue to provide coverage, employers must add the cost of the premium to their employees’ wages — and trust that the employees will buy their own health insurance. The good news for the employer is that they are too small to be hit with ACA penalties for not providing insurance if they don’t offer coverage. The bad news for these employees is they are now paying the full load of taxes on their health insurance coverage — and they are responsible for buying their own policies.
The other problem is that if a couple gets married during the year and one spouse has full and adequate coverage — and can avoid all the ACA penalties — but the other might not have coverage for four or more months, it can trigger a lot of penalties...

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