coverage

IRS Health Care Tax Tip 2014-13, Apr. 17, 2014

Find out if You Qualify for a Health Insurance Coverage Exemption

The Affordable Care Act calls for individuals to have qualifying health insurance coverage for each month of the year, have an exemption, or make a shared responsibility payment when filing his or her federal income tax return.

You may be exempt from the requirement to maintain qualifying health insurance coverage, called minimum essential coverage, and may not have to make a shared responsibility payment when you file your next federal income tax return. .

You may be exempt if you:
•Have no affordable coverage options because the minimum amount you must pay for the annual premiums is more than eight percent of your household income,
•Have a gap in coverage for less than three consecutive months, or
•Qualify for an exemption for one of several other reasons, including having a hardship that prevents you from obtaining coverage or belonging to a group explicitly exempt from the requirement.

The IRS website, IRS.gov/aca, has a comprehensive list of the coverage exemptions.

How you get an exemption depends upon the type of exemption. You can obtain some exemptions only from the Marketplace in the area where you live, others only from the IRS, and yet others from either the Marketplace or the IRS.

Additional information about exemptions is available on the Individual Shared Responsibility Provision web page on IRS.gov. The page includes a link to a chart that shows the types of exemptions available and whether they must be granted by the Marketplace, claimed on an income tax return filed with the IRS, or by either the Marketplace or the IRS. For additional information about how to get exemptions that may be granted by the Marketplace, visit HealthCare.gov/exemptions.

More Information

Find out more about the tax-related provisions of the health care law at IRS.gov/aca.

Find out more about the health care law at HealthCare.gov.

Subscribe to IRS Tax Tips to get easy-to-read tips via e-mail from the IRS.

Source: http://www.irs.gov/uac/Newsroom/Find-out-if-You-Qualify-for-a-Health-Insurance-Coverage-Exemption

Q: Do you know if dental and vision and our STD/life policies are governed by PPACA? I’m trying to figure out if I need to change our eligibility on those to become 60 days, like our health. Do we need to make those changes with our plans or will they be an automatic change?

A: These stand-alone programs are excepted benefits under HIPAA so you shouldn’t have to revise the waiting period. Here is a reference source: www.hortongroupblog.com/ proposed-guidance-issued-on-90-day-waitingperiod- limit/.

Source hiu-digital.com; http://d27vj430nutdmd.cloudfront.net/23967/197281/98f13de6b67298a5688b7f8a5185a00aded4be02.5.pdf

5.1 Southern California earthquake reminds Californians to be prepared for the Big One

Earthquake insurance can help residents repair, rebuild, or replace

LOS ANGELES, Calif. – The 5.1 La Habra earthquake was significantly more powerful than the 4.4 magnitude trembler on St. Patrick’s Day in Los Angeles. These events serve as a reminder of the importance of purchasing earthquake insurance, having an emergency plan with adequate supplies for your family, and to retrofit older homes that may not be tied down to the foundation.

“The 5.1 earthquake in La Habra is a reminder to Californians of the need for preparation before catastrophic events strike,” said Commissioner Dave Jones. “I extend my sincere concern and sympathy for those who incurred a personal injury or are dealing with damage to their homes and personal property as a result of this earthquake. The topography of California is dramatic and beautiful, but this should be a constant reminder that earthquakes can strike at any time, along any fault line, and typically when we least expect it. This reality underscores the importance for Californians to take some very simple, but very effective precautionary steps before it is too late.”

To find important information about preparing for a disaster, please visit the web site of the California Department of Insurance or call our toll-free consumer hotline at 1-800-927-HELP.

Earthquake preparedness includes, but is not limited to, the following:

″Review your insurance policies at least once each year with your agent or broker to ensure that they provide adequate coverage.

″Consider purchasing an earthquake policy if your home is in an earthquake-prone area, and is more susceptible to earthquake damage such as older or multi-story homes, or homes on soft soil or a slope.

″Take measures to retrofit your home to increase your safety during an earthquake.

″Bolting your home’s wood frame to the foundation can prevent damage resulting from the structure sliding off its foundation. And for houses on raised foundations, the bracing of “cripple walls” can also reduce damage from earthquakes.

″Brace your water heater to minimize the risks of fire and water damage caused by water heaters that topple during earthquakes.

″Mobile home owners should use earthquake-bracing systems to reduce the chance of damage from homes slipping off support jacks.

″Fasten cupboard doors with child-proof latches to prevent them from opening and spilling their contents.

″Fasten bookcases, mirrors, televisions and other tall or heavy objects to wall studs.

″Gas appliances should have flexible attachments, and family members should be familiar with gas shut-off techniques.

For more earthquake preparedness tips, go to www.redcross.org and http://earthquake.usgs.gov/.

Most homeowners’ and renters’ policies do not cover damage from earthquakes. Under California law all insurers selling residential property insurance are required to also offer earthquake coverage subject to minimum dwelling, personal property and additional living expense limits. Dwellings must be covered but other structures such as outbuildings, swimming pools, and masonry fences may be excluded.

Source: California Department of Insurance, http://www.insurance.ca.gov/0400-news/0100-press-releases/release013-14.cfm