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• What the Law Says - There must be a "Religious Exemption" The law says that those who hold "sincere religious belief" against medical care can be exempted from the Mandate. See text of the rules here. What this means You may claim a "Religious Exemption" on your taxes but will be severely fined and unable to claim this in future years if you use any medical services at all. In fact, you will be disqualified if you received any medical services at all in the year prior to filing for this exemption. There’s a question on the tax form that asks if you received any medical care during the prior year. If you had an epiphany during the prior year, you can explain it to the judge. All medical services for everyone are immediately reported to the state, even if paid for directly by the individual.
In fact, medical providers are mandated by law to report all care and payments. Very stiff penalties will placed on any doctor, clinic or hospital who does not obey. This is the law. •
What the Law Says -
Premium affordability is based on income; Income
includes not only wages but also interest, dividends, IRA distributions,
some Social Security benefits, unemployment compensation, alimony and all
other taxable income sources. |
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Massachusetts-style health insurance |
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What this means Exact yearly income is unpredictable for many. However, the way this system is set up, taxpayers must be aware that If the dollar amount of their income exceeds any of the pre-defined brackets set by the Connector by even one dollar, the individual will be liable for paying much more for the premium and co-pays or the penalty. You could even find yourself bumped out of a subsidized plan and be forced to purchase a Commonwealth Choice plan. You could also wind up out of the income limit for a Commonwealth Choice plan which means you’re on your own. Even if several
dollars more are earned, this might not be enough to cover the newly-incurred insurance costs, and the individual or family will be worse off than before this “extra” money was earned. It will go right into the new insurance costs and will not be available for paying the ever-rising costs of gas, food, heat or property taxes. Or, it could go right into the monthly penalties incurred by those who could not afford the insurance but did not meet the
exemption
or
hardship
requirements - the higher the premium, the higher the penalty. Regressive, isn’t it? Those who have planned well and are fortunate enough to have some savings must also keep an eye on their income interest, particularly, if a CD or bond comes due and needs to be reinvested. Dividends paid from stocks must also be counted and these, too, change with the tide. If you overestimate and have paid higher premiums than what was deemed affordable for you, will you get a refund? Highly unlikely, but if you under estimate, you can be sure you will have to pay a penalty. There’s a lot to keep track of but it’s in the best interest of residents to be aware of how this law will affect their ability to heat and eat among other necessities. Income limitation is not good for the individual, family or for the economy, but in the long-run, lowering income could actually save dollars if the amount of “extra” income earned isn’t enough to pay the new premium or penalty. It's a real “catch-22”. |
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Read the next "What the Law Says" topic |
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The Individual Mandate explained / The Connector Authority / Affordability / The Appeals Process |
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Religious Exemption / Income estimation / Tax enforcement and Criminal penalties / Data Gathering |
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Estate Recovery / Insurance plan "lock-in" / State as health insurance / Primary Care Shortage |
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