by jeffsmitth » Sun Mar 24, 2013 03:55 pm
May be few people don't like to discuss about this point. Which insurance is better
Health Insurance
OR
Life Insurance
?
I am just waiting your response
Health Insurance
OR
Life Insurance
?
I am just waiting your response
Posted: Fri Apr 05, 2013 12:33 pm Post Subject:
Alright. I made a $55 mistake in stating the penalty in 2016 is $750. Shoot me.
I explained the source of that mistake here: http://www.ampminsure.org/claims/about19826.html so there is no need to requote the law here as Congress originally wrote it.
But Brody Insurance has also made some mistakes, and I won't accuse him of anything more than the common confusion that the PPACA has burdened all of us with.
the penalty is monthly
Yes, the penalty is assessable on a monthly basis. But the $95, $350, and $695 is not a monthly amount, it is the flat annual "applicable dollar amount", and is further limited to 1% of a person's "income" in 2014, 2% in 2015, and 2.5% after 2015, when the penalty is indexed for inflation. The monthly penalty is 1/12 the annual applicable dollar amount.
premiums are above 8% of their income
The premium to which this refers is "the national average premium for qualified health plans which have a bronze level of coverage, provide coverage for the applicable family size involved, and are offered through Exchanges". In other words, the premium for the lowest cost plan through an exchange. It's not as simple as sayingIf insurance costs $500/month, this will exempt anybody who has an income of less than $75,000. For a family, if coverage is $1000/month, the exemption would be for family incomes of under $150,000.
I'm not certain the exemption would apply to a person if the lowest cost bronze plan in State A is less than the "national average". And since the penalty is assessable up to 300% of the applicable dollar amount, I think his "$1000/month . . . $150,000" is probably incorrect also. These are all going to be questions for the Tax Court to answer somewhere down the line. Thanks to SCOTUS and their determination that the "penalty" is not a fine, but a tax, and Congress has the power to tax, but it does not have the power to fine, without a trial/hearing.And the rules are different still for employees who have access to an employer-sponsored plan. In that case, the test of "affordability" is 9.5% of Modified Adjusted Gross Income (MAGI) as it relates to "self-only" coverage. The cost of family coverage is immaterial. If the employee can "afford" the self-only cost, they cannot forgo the employer plan and head to the Exchange for their own coverage. They can't be forced to carry their dependents on the employer's plan, but the dependents would still have to have insurance or face the possibility of the penalty. Employers whose employees enroll in coverage through the Exchange face a per-employee "free-rider penalty" of $2,000 or $3,000 for each such employee that does so (with no penalty for up to 30 employees).
Complex? No kidding. How much more stupid can a law get?
I am not sure what is counted as "income"
Fair enough. Here's what 26 USC Sec. 5000A (the Internal Revenue Code) says about that. Read carefully:(B) Household income
The term “household income” means, with respect to any taxpayer for any taxable year, an amount equal to the sum of—
(i) the modified adjusted gross income of the taxpayer, plus
(ii) the aggregate modified adjusted gross incomes of all other individuals who—
(I) were taken into account in determining the taxpayer’s family size under paragraph (1), and
(II) were required to file a return of tax imposed by section 1 for the taxable year.
(C) Modified adjusted gross income
The term “modified adjusted gross income” means adjusted gross income increased by—
(i) any amount excluded from gross income under section 911, and
(ii) any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax.
one can go three months without coverage. . . . Therefore, it is possible to avoid a penalty by only having coverage for 9 days total for the year.
I don't find that anywhere in the PPACA or the Internal Revenue Code. The maximum exemption is for 3 months. The rules about coverage gaps and the penalty is stated in 5000A as(4) Months during short coverage gaps
(A) In general
Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months.
(B) Special rules
For purposes of applying this paragraph—
(i) the length of a continuous period shall be determined without regard to the calendar years in which months in such period occur,
(ii) if a continuous period is greater than the period allowed under subparagraph (A), no exception shall be provided under this paragraph for any month in the period, and
(iii) if there is more than 1 continuous period described in subparagraph (A) covering months in a calendar year, the exception provided by this paragraph shall only apply to months in the first of such periods.
The key words are "continuous period of less than three months" (or the absence thereof). The entire section of the IRC begins with this statement:
(a) Requirement to maintain minimum essential coverage
I don't know how Brody Insurance interprets this, but the language is clear. As I read it, the penalty exemption cannot be more than three months, and is probably only allowable for two months. Congress anticipated the person who thought he could get away with buying insurance for just one day to avoid the penalty for a month, because the coverage is expected to be maintained for the entire month to avoid the penalty, absent this exemption for a "short coverage gap". "for such month" is not the same as saying, "for at least one day in any month."An applicable individual shall for each month beginning after 2013 ensure that the individual, and any dependent of the individual who is an applicable individual, is covered under minimum essential coverage for such month.
I don't see famvariouawerb (or whatever pseudonym he chooses to use on any particular day) challenging those mistakes, mudslinger that he is in my direction.
Posted: Fri Apr 05, 2013 01:07 pm Post Subject: Differences
Life insurance is designed to provide you with a pay-out in case you die and to potentially provide a little income along the way.
Where as health insurance is designed to protect your finances from unexpected serious medical costs.
Posted: Fri Apr 05, 2013 01:15 pm Post Subject:
Life insurance is designed to provide you with a pay-out in case you die
Sorry to burst your bubble, but YOU cannot live and die and collect. Those who do are prosecuted for insurance fraud when they're caught. And then they get their health care paid for by everyone else who pays taxes in that state.Posted: Fri Apr 05, 2013 03:04 pm Post Subject:
I don't know the answer, but I don't see any evidence that Brody Insurance is wrong. My reading of what Max just wrote would lead me to conclude that all that matters is whether a person has coverage on the last day of the month. If coverage is there on the last day of the month, there is no coverage gap.
"4) Months during short coverage gaps
(A) In general
Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months."
I could be wrong here, but it sure looks to me that coverage on the last day of every month stops a person from paying a penalty for that month.
Posted: Mon Apr 08, 2013 01:54 am Post Subject:
Try and buy insurance that starts on the last day of the month. LOL.
But I expected as much from you, since you fail to understand the law as it is written.
Posted: Mon Apr 08, 2013 02:50 am Post Subject:
Exactly what I was looking for, thanks for sharing.
Posted: Mon Apr 08, 2013 07:09 am Post Subject: California Insurance Agent
Hi,
Life Insurance is best because, it policy owner is "peace of mind", in knowing that the death of the insured person will not result in financial hardship for loved ones and lenders.
Posted: Mon Apr 08, 2013 01:28 pm Post Subject:
Try and buy insurance that starts on the last day of the month. LOL.
But I expected as much from you, since you fail to understand the law as it is written.
I don't know how it is going to work yet, but with coverage not having medical underwriting, there is no reason why it would take weeks to get approved.
It is very possible that coverage can be with same day approvals. It is also very possible that a person can apply today with an effective date for the end of the month.
"LOL" is the best that you can come up with against what I'm saying?
Posted: Mon Apr 08, 2013 02:40 pm Post Subject:
Get the insurance in accordance with your preference that is suitable for you.
Posted: Tue Apr 09, 2013 04:50 pm Post Subject:
Real Life:
On Mother's Day, Grandma had been running a temperature of over 102 degrees for two days. She couldn't eat, was sweating profusely and her chest hurt. She had cold chills, explosive bowels, was severely dehydrated and her hair was falling out.
If Grandma has HEALTH INSURANCE, she goes to the doctor, is prescribed some medication and by Memorial Day she's on her Harley headed to the Indian Gambling Institution to squander her social security cheque.
If, however, she has LIFE INSURANCE, she dies a lonely, miserable death and her kids spend the next two years arguing over who gets Grandma's money.
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