8 Questions Answered about the Individual Health Insurance Mandate in Kentucky

Now more than ever people have specific questions about Kentucky individual health insurance. The Supreme Court has passed the Affordable Care Act and many wonder what this will mean for them. Here is a series of the most frequently asked questions about the mandate including informed answers:

1. Is the individual mandate a penalty or a tax? According to the Supreme Court the individual mandate is a tax not a penalty. Even though there is a “penalty” that you must pay if you do not have Kentucky individual health insurance, this penalty is being called a tax.

2. How much is the penalty people have to pay if they do not have health insurance by 2014? The penalty is “$285 per family or 1% of the family’s income”. What many may not realize is that this amount will increase to $2,085 a family or 2.5% of their income in 2016. The amount is expected to increase as time goes on.
 
3. What if you do not have insurance by the starting date of the mandate?  If you do not have Kentucky individual health insurance by the starting date of the mandate there will be a grace period for up to a maximum of three months. Once that grace period has gone by you must have insurance or you will be taxed.
 
4. When does the mandate start? January 1, 2014 is when the insurance mandate will go into effect.
 
5. Where can Kentucky individual health insurance be purchased? The state will have set plans called exchanges that will be offered, as well as online plans that can be purchased through insurance brokers or providers.
 
6. Are there options for those who cannot afford health insurance and are not eligible for Medicaid? Yes, those in this situation may be able to get subsidies depending on their income.
 
7. Are people automatically enrolled in a plan if they do not have insurance by January 1, 2014? No, it is up to each individual to obtain his or her own health insurance.
 
8. Will people be able to get health insurance even though they have a pre-existing condition? Yes, as of January 1, 2014 no one can be denied coverage because of a pre-existing condition.

It is important that you know and understand all of this information so that you and your family do not have to pay a penalty. Also, the sooner you buy insurance the better because premiums are expected to rise as time goes on. Do not delay, purchase health insurance today!