TAKING THE PAIN OUT OF HEALTH INSURANCE

Health Care Mandates and Tax Reform: What’s Really Going On?


January 3, 2018

Tax Reform and Health Insurance: What's The Deal?

The Affordable Care Act experienced a lot of ups and downs this year. Congress attempted to repeal and replace the act over the summer but was unable to assemble enough votes. However, many in Congress, especially those in the Republican party, still want to repeal at least some areas of the ACA. One area of contention in this law is the individual mandate, which might become obsolete with the passing of the tax reform bill.


What Is the Individual Mandate?

The ACA's 
individual mandate requires everyone to obtain some type of qualifying healthcare coverage through their job or on their own. Otherwise, you face paying a penalty with your income taxes for every month for which there was no coverage, which can be as high as over $2,000 per person or the total yearly premium of the average national price of a Bronze plan. Businesses that employ more than 50 employees must also provide qualifying health insurance for their employees as part of the individual mandate. 

Does the Individual Mandate Remain Valid?

The Republicans in the Senate tried one more time to do away with this part of the ACA by adding a repeal of the individual mandate in their 
tax reform bill. Because this bill passed, there are many questions as to what this means for individuals around the country. 

Although the tax reform bill includes a repeal of the individual mandate, the bill is not yet law. Therefore, the individual mandate remains applicable. Starting this tax season, the IRS plans to 
reject tax returns that omit the information regarding health coverage. 

What About the New Tax Reform Bill?

Currently, the tax reform bill has passed through both the House of Representatives and the Senate. Only the Senate bill includes a repeal of the individual mandate. As of publication, the two bills must undergo a 
conference committee during which leaders of both parties debate the differences in the bills, including the repeal of the individual mandate, and create a single bill. Then, both parties voted on the conference bill with a simple majority to pass it. After that, President Trump signs the bill into law. 

Although the new tax reform passed into law, whether the repeal of the individual mandate remains is unknown. However, it will most likely not impact 2018, since the change would not 
begin until 2019. Therefore, for the time being, it is important to remain compliant with the current law, which includes the ACA and the individual mandate.

For more information on securing health insurance for individuals or for groups including employee benefits to remain compliant, 
contact us at 707-823-3689. To remain up to date on the latest health coverage news, like us on Facebook, and subscribe to our blog.


Share This Post

Taking The Pain Out Of Health Insurance

We make it simple to find the right insurance plans for your needs

In just a few quick steps.

Comments


Posts You Might Also Like


A group of people are sitting around a table looking at a tablet.
By Sackett Insurance Services March 26, 2025
Health insurance brokers help people find affordable coverage. Learn how they simplify choices, lower costs, and improve access to healthcare.
Three wooden figures of a family standing next to each other on a wooden table.
By Sackett Insurance Services March 7, 2025
Discover the key health insurance trends for 2025, from AI advancements to expanded telehealth and mental health coverage. Stay ahead of the changes!
A group of people holding red umbrellas in the rain.
By Sackett Insurance Services February 19, 2025
Discover how insurance brokers simplify coverage, save time, and provide expert guidance to help you find the best policies for your needs.
A pink heart with a smiling face is surrounded by hearts and coins.
By Sackett Insurance Services February 12, 2025
Discover how to choose the right health insurance plan by assessing your needs, comparing costs, and understanding coverage for smarter, informed decisions.
A person is holding a tablet with the word benefit on it.
By Sackett Insurance Services January 27, 2025
Discover how Sackett Insurance’s employee benefits software simplifies compliance, enhances efficiency, and boosts California businesses with tailored programs.
A man is showing his empty pockets.
By Sackett Insurance Services January 11, 2025
Learn how a health insurance broker can help you understand out-of-pocket maximums and choose the best plan to minimize costs while ensuring comprehensive coverage.
Share by: