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ObamaCare Mandate: Exemption and Tax Penalty
The ObamaCare officially called the Patient Protection and the Affordable Care Act is legislation that was aimed to restructure the health care industry in America by President Obama on March 23, 2010. The focus was on bringing about a marked improvement in the status of health care receivers by giving them more freedom and control over health insurance. The ObamaCare Mandate holds that individuals who opt away from buying insurance are liable to pay a tax as a penalty. But they are allowed Obamacare exemption only if they qualify for it.
The Obamacare mandate‘s exemptions may include people who are members of some religious groups and Native American tribes; undocumented immigrants who are not entitled for any type of health insurance subsidies under the law; incarcerated individuals; people who have low income and are not required to file for taxes and lastly for those people whose incomes are so low that health insurance is regarded as exorbitant and unaffordable.
ObamaCare extends numerous rights and protections to the Americans so that all insurance plans include preventive services and offers the necessary health benefits. It ensures that insurance companies do not deny your rights because of small application mistakes or any kind of gender discrimination. To be able to reap the benefits of these positive changes people in America are expected to acquire health coverage by 2016 and an exemption or pay.
Any individual in America who is in a position to buy insurance but opts not to, are required to pay an income tax penalty. In official terms it is a tax but is also referred as penalty and a mandate. ObamaCare mandate requires that any non-exempt who wants to buy non-qualifying health insurance has to pay income tax surtax. However, the all over sum of penalty amount cannot surpass the national average of the annual premiums of a “bronze level” health insurance plan on ObamaCare exchanges.
ObamaCare plans to set up state specific health insurance marketplaces also called exchanges to support low-to-middle income Americans devoid of health coverage to procure it with the help of cost assistance. Enrollment for the ObamaCare Health Insurance Marketplace is open to the public from October 1st, 2015 to March 31st, 2016. This novel health care reform law in America has helped in heralding an era of quality, accessible and affordable private and public health insurance. It provides a breather to the millions who are uninsured and brings a stall on unnecessary healthcare spending.