The Affordable Care Act does affect people in their twenties. It is important to learn what will happen if you do not sign up for health insurance. The Affordable Care Act is set up to make it easier for people who can't afford health insurance get it. It is an attempt to make health care more affordable. One way it does this is require everyone to have health insurance. This will reduce the number of people who are unable to pay their medical bills, which drives up the cost of health insurance for everyone else.
1. What Happens If I Don’t Have Health Insurance?
If you choose not to have health insurance, you will face the fines imposed under the Affordable Care Act. The fines will be due when you file your 2014 taxes. The fines that will be imposed in 2014 is 1% of your income or $95.00. They will fine you the higher amount. The fine will continue to go up every year. In 2016, it will increase to 2.5% of your income. If you make $100,000, in 2014, you will pay a $1,000 fine and in 2016 you will pay a $2,500 fine. This is a significant fine, and if you do not sign up you need to be prepared to pay the fine. Be sure that you plan for it.
2. Reasons to Get Health Insurance
While you may not want to spend money on health insurance, there are a wide variety of reasons that you need to get health insurance. It can be very expensive to deal with an unexpected medical emergency like appendicitis or a serious skiing accident. You can qualify for an affordable health insurance policy underneath the Affordable Care Act. Medical debt can bankrupt you. The medical debt can negatively affect your quality life, and having health insurance is one way that you can prevent yourself from facing this type of issue. It also makes it easier to go in to get preventive care so that you do not need more expensive procedures later.
3. Are There Affordable Options?
There are a variety of ways that you can get coverage that will not cost that much money. You need to carefully choose the best insurance policy that is currently available to you. You need to take the time to review your options and choose a policy that will work for you. In addition to the health insurance exchanges set up by your state, you can look into insurance options through your employer or you can see if you still qualify to be on your parents’ plan if you are under the age of twenty-six.
4. What Is the Time Frame to Enroll?
The open enrollment period will begin in October 1 2013, and ends December 15, 2013. If you enroll during this time your new coverage will begin on January 1, 2014. Enrolling will prevent you from paying the fines. Remember that health insurance will protect you financially, as well. If you truly cannot afford health coverage, you may qualify to have the fine waived. If this is the case, you may want to see if you qualify for Medicaid or Medicare. If you feel like health care is too expensive, then you may want to consider a high deductible health insurance plan. The premium will be lower, and will give you catastrophic coverage in the event of a serious accident or illness. If you do choose this option, you can also set up a Health Savings Account. This allows you to save to cover the deductible tax free. If you miss the deadline to enroll, you will face the fines imposed by the Affordable Care Act.