Health Care Two-Year Extension on Health Plans Not Meeting New Law Standards Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Mar 6, 2014 2 min read In case you haven’t heard, the Obama Administration announced yesterday, an additional two-year extension for individual health plans that don’t meet minimum insurance coverage requirements, allowing insurance companies to continue offering these plans. The two-year extension comes after a one-year grace period announced in November by the Obama Administration. Under the Affordable Care Act, insurance companies are required to meet minimum essential insurance requirements for coverage. Those offering out-of-date private plans that don’t comply with the new law were required to issue cancellation notices to their customers. Those who received the notices were required to purchase insurance in the Health Insurance Marketplace by the March 31, 2014 deadline. This new extension may prevent some customers with insurance that doesn’t meet minimum coverage standards under the Affordable Care Act from receiving cancellation notices and may allow them to stay on their existing health plans for an additional two years. What Does this Mean for You and Your Taxes? If your insurance doesn’t meet minimum essential requirements, you may have two more years on your existing health insurance plan and you may not have to worry about purchasing in the Health Insurance Marketplace by March 31, 2014 to avoid a tax penalty assessed on your 2014 taxes filed in 2015. You can continue on your old insurance plan until October 1, 2016 if your state commissioner allows your insurer to continue offering your plan. Quick Tip: It will be up to your state commissioner whether they allow your insurer to continue offering out-of-date private plans for two more years. If they don’t, you will have to purchase health insurance in the Health Insurance Marketplace if your insurance is cancelled. What If I Received a Cancellation Notice? If your insurance was already cancelled because it did not meet the new standards under the Affordable Care Act, then your insurer has the option of possibly insuring you for two more years. It will be up to the state commissioners whether they allow insurers to continue offering out-of-date private plans for two more years. Check back with the blog for more up to date information regarding the health care law. TurboTax is here to help explain health care reform and how it affects you and your taxes, so that you can make the best decision for your health and finances. Have specific questions about how this impacts you? Get health care answers in our TurboTax AnswerXchange. Previous Post 6 Common FAFSA Mistakes [Infographic] Next Post Money and Tax Tips for Newly Married Couples Written by Lisa Greene-Lewis Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis Follow Lisa Greene-Lewis on Twitter. 2 responses to “Two-Year Extension on Health Plans Not Meeting New Law Standards” Where can one find the form that has been mentioned in the news about this further delay of the ACA which effectively nullifies the individual mandate based on affordability or hardship ? I am sure all of your clients and readers would appreciate this info. Reply Hello, I have a small business and I tried to use this, but it didn’t work. took sum of my tax stuff off Quick books it said that I owed $16,000 in taxes.. SO WE WENT TO H &R BLOCK.. just wasted $80. on turbo tax.. Reply Leave a ReplyCancel reply Browse Related Articles Tax News Intuit TurboTax April Report: A Look at Refunds and S… Tax Planning April 15 is the Tax Deadline: 6 Things You Need to Know… Tax Planning Unable to Pay Your Tax Bill? Here’s What To Do Tax Tips Tax Credits 101: What They Are & How They Work Business How to Know if You Should Invest in Business Insurance Tax Deductions and Credits What Is the Standard Tax Deduction for 2023 – 202… 401K, IRA, Stocks Should You Use Your 401(k) or Retirement to Pay Off Deb… Tax Planning What Happens If You Don’t Pay Taxes? Understanding Pe… Tax Deductions and Credits Family Taxes: Take Advantage of Tax Savings Taxes 101 How Much Do You Have to Make to File Taxes? Demystifyin…
Where can one find the form that has been mentioned in the news about this further delay of the ACA which effectively nullifies the individual mandate based on affordability or hardship ? I am sure all of your clients and readers would appreciate this info. Reply
Hello, I have a small business and I tried to use this, but it didn’t work. took sum of my tax stuff off Quick books it said that I owed $16,000 in taxes.. SO WE WENT TO H &R BLOCK.. just wasted $80. on turbo tax.. Reply