Many people will have to obtain or upgrade health plans or face hundreds in penalties
Under the Affordable Care Act, a number of people who already have health plans will have to upgrade their policies in order to secure the minimum amount of coverage required. Recently, the administration announced that Americans whose health plans will not meet the minimum requirements do not have to switch immediately. However, eventually these individuals will have to obtain more comprehensive coverage, and getting ahead of the game by shopping for a more expensive policy can be financially draining.
Of course, many people do not yet have health insurance coverage at all. For these individuals, obtaining an Obamacare compliant plan can mean hundreds of dollars added to a monthly household budget. Those who do not fall under one of several exemptions built into the law and fail to obtain a policy that offers enough coverage will have to pay a tax penalty.
In 2014, this penalty will be $95 per person or one percent of annual income, whichever is higher, up to a maximum of $285. In 2015, the penalty will grow to $325 per person or two percent of annual income, up to $975. By 2016, it will be $695 or 2.5 percent of income, up to $2,085, and it will thereafter be adjusted to account for changes in the cost of living.
Could bankruptcy help you turn your financial life around? Talk to a lawyer to find out
For those already struggling with bills, an obligation to pay more every month for an Obamacare compliant health pay or a tax penalty can be the straw that breaks the camel’s back. If you find yourself in this situation, you could have eligibility for legal solutions to help you reverse your financial situation.
Filing for bankruptcy can wipe out most types of debt, freeing up future income for other purposes. If you are struggling to pay your bills and new health plan requirements are further straining your finances, bankruptcy could be advantageous. Speak to a bankruptcy lawyer to explore whether bankruptcy could be the right solution to your financial problems.