Frequently Ask Questions on The Affordable Care Act

Jan 29, 2015

The American Institute of CPAs (AICPA) has many helpful guides when it comes to the Affordable Care Act. At Swindoll, Janzen, Hawk & Loyd, LLC, we want to help you understand the facts.

The AICPA published a helpful FAQ document on the Affordable Care Act for Individuals at the end of 2014. Within that document, it helps answer questions such as "What are the maximum out-of-pocket costs for individual plans?" and "Is there any tax relief available to lower out-of-pocket premium costs?"

1. What are the maximum out-of-pocket costs for individual Marketplace plans?

Answer: Maximum for any individual Marketplace plan for 2015 is $6,600 and $13,200 for a family plan.

2. Is there any tax relief available that can lower my out-of-pocket premiums?

Answer: Individuals may be eligible for the Premium Tax Credit on their federal tax return if:

Purchase insurance through the Marketplace

Are ineligible for employer or government-plan coverage

Are within specific low-or-moderate-income limits

Cannot be claimed as a dependent by another person

3. How have Health Flexible Spending Arrangements (FSA) contributions and Health Savings Account (HSA) distributions been affected by the ACA?

Answer: Contributions made annually to a health FSA are limited to $2,550 or the plan maximum, whichever is less. There is a 20% penalty, up from 10%, on HSA funds applied to non-qualified medical expenses.

If you have any questions on the Affordable Care Act, please contact your Accountant.

You can find other helpful documents from the AICPA by clicking here.