Over the weekend, the Senate approved the largest change to the U.S. tax code in 30 years. Lowering taxes for American businesses and families is the heart of President Trump’s plan to boost the economy. What’s being dubbed as the “Tax Cuts and Jobs Act,” the new tax bill will change a lot of things that affect our budgets as a business and as a family. As an insurance agency, the item that stands out in this bill is the repeal of the health insurance mandate.
What the repeal of the health insurance mandate means for you
In the high likelihood of this repeal going into effect, people who elect to not have insurance, or have insurance that meets the federal standard, will no longer be penalized for it. The majority of people that feel forced to buy health insurance, or make above poverty levels of income that disqualify them to receive subsidies that aid in covering the cost of Obamacare insurance, will be the biggest benefactors of this repeal.
“Families ought to be able to make decisions about what they want to buy and what works for them — not the government,” Sen. John Barrasso (R-Wyo.)
No more tax penalties
The penalty has always been a point of contention to most, as this would negate a large portion of, if not all or potentially causing to owe on, tax returns. Americans can now breath easy, as this means their tax return is no longer held hostage. Placement of this bill into effect would apply to the 2018 tax year that gets filed in 2019. There is no word on retroactively applying this to the 2017 tax year.
Free to shop for health insurance that meets your needs
The repeal of the mandate does not mean people should go without health insurance. Should a medical emergency occur, people should have adequate coverage that provides financial peace of mind over medical expenses. The repeal ultimately gives people the option to get the coverage that fits their personal and financial needs without being forced coverage they would never use. Through the ACA, buyers were forced to get insurance that met the 10 essential benefits. These benefits are:
- Ambulatory patient services (outpatient services)
- Emergency services
- Maternity and newborn care
- Mental health and substance use disorder services, including behavioral health treatment
- Prescription drugs
- Rehabilitative and habilitative services (those that help patients acquire, maintain, or improve skills necessary for daily functioning) and devices
- Laboratory services
- Preventive and wellness services and chronic disease management
- Pediatric services, including oral and vision care
This means through the ACA, a single male with no children currently has to pay for coverage for services he would never use, like maternity and newborn care, or pediatric services. With the repeal, the same male can pick and choose what coverage he desires that he could actually use.
The doors are open to get a custom tailored insurance package. Contact First Family Insurance today!