Each week both nannies and parents contact Be the Best Nanny Newsletter asking about basic and essential health insurance for nannies and for information about the Affordable Care Act (ACA). We have posted many articles on the topic and nannies tell Be the Best Nanny Newsletter that they prefer being offered health insurance by their employers as a nontaxable form of compensation in lieu of a raise.
Recently more nannies and parents have asked who is required and who is exempt from buying coverage under the ACA (commonly known as Obamacare).
The ACA does not cover every person without health care and does not apply to every kind of insurance. Most individuals and families already have sufficient coverage to satisfy the minimum health insurance requirements of the ACA. Some provisions of the law have already gone into effect, and many more will go into effect in January of 2014. These mandates are important for nannies to take into account.
If you are insured during 2014 by your employer, by your own purchase, by Medicare, Medicaid, any Veterans Administration program, or by a grandfathered plan, then your insurance requirement is satisfied.
You are exempt from the mandate from purchasing health insurance if you are an undocumented immigrant, if you are incarcerated, if you are a member of an Indian tribe, or if you practice certain religions that are opposed to accepting benefits from health insurance. You are also exempt from purchase and penalty if your income is below $9,350 for an individual or $18,700 for a family. You need not spend more than 8% of income for health insurance Everyone not included in the above groups are required to have or to purchase health insurance from government or private providers.
Click here to learn more about finding the cheapest health insurance in your state.
Do you have health insurance?
It really bugs me that this is a law. I do not get heath care provided so I am required to buy on my own. Because I have benign tumors, companies want to charge me $700-$1000 a month to be insured! This law is making it impossible for me to live off of my current paycheck. I love my job and have no desire to do anything else. It cost me a lot less to pay out of pocket for services. Big government is what is ruining this country!
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ReplyDeleteSorry to hear that Kiki and thanks for sharing.
I have a pre-existing illness and was paying $1,600 for health insurance prior to the Affordable Care Act and now have basic and essential insurance for just over $400 per month.
Did you try finding the cheapest health insurance in your state using this link? I pay just over $400 per month, basic and essential insurance despite my pre-existing condition now. Despite having a pre-existing condition the health care reform really really saved me. Perhaps you can find a cheaper rate at the link.
http://finder.healthcare.gov/
I hope you can find a cheaper premium like I was able to find thanks to the affordable care act.
Then ask your nanny boss to send in the premiums (even if you are still paying) so you can not be taxed on the premium. No matter the health care insurance you have if your employer sends in the premium than you won't be taxed on the premium. Then your boss gets a tax credit at the end of the year.
At first when I changed health insurance my boss simply deducted the premium from my paycheck, she sent in the premium check so I wouldn't be taxed on the premium (nontaxable compensation). Then she got a tax credit at the end of the year.
Then when my Nannyverisary came up she decided to pay the premiums because as a small employer her tax credit almost pays the entire premium now.
Check out http://finder.healthcare.gov/ and see if there is cheaper insurance you can get even with a pre-existing condition.