Many single parents will have additional financial burdens placed on them under Obamacare.
If a single parent earning between 133% and 400% of the Federal Poverty Level works for an employer, the employee has "affordable" healthcare if their required contribution does not exceed 9.5% of their income. Under this scenario, if the employee also has dependents, the employer can charge in excess of 9.5% and the employee (single parent) must pay it or face the individual mandate penalty for not insuring the dependents.
If, however, that same single parent with the same 133% - 400% FPL income purchases healthcare through an Exchange, they will likely qualify for the premium assistance tax credit. In that case the single parent will pay only that percentage of his/her income to cover the entire family.
For example, a single parent earning $59,000 who purchases healthcare coverage through an exchange will pay 8.1% of their income to cover him/herself and their dependents ($4,779.00), with HHS picking up the balance). If that same single parent earning $59,000 is enrolled in an employer-sponsored healthcare plan, the employer can charge the employee up to $5,339 for employee coverage only (9.5% of the employee's income). In this case, the employer is allowed to charge premiums for dependents in excess of the 9.5% threshold thanks to a HHS ruling. The employee has no recourse but to pay the premiums cost or be hit with the individual mandate penalty for not insuring his/her dependents.
And because the employee has an offer of affordable healthcare through his/her employer, he/she is not eligible to purchase healthcare through an exchange.
Single parents have enough challenges........adding an additional financial burden on some is not fair.
If a single parent earning between 133% and 400% of the Federal Poverty Level works for an employer, the employee has "affordable" healthcare if their required contribution does not exceed 9.5% of their income. Under this scenario, if the employee also has dependents, the employer can charge in excess of 9.5% and the employee (single parent) must pay it or face the individual mandate penalty for not insuring the dependents.
If, however, that same single parent with the same 133% - 400% FPL income purchases healthcare through an Exchange, they will likely qualify for the premium assistance tax credit. In that case the single parent will pay only that percentage of his/her income to cover the entire family.
For example, a single parent earning $59,000 who purchases healthcare coverage through an exchange will pay 8.1% of their income to cover him/herself and their dependents ($4,779.00), with HHS picking up the balance). If that same single parent earning $59,000 is enrolled in an employer-sponsored healthcare plan, the employer can charge the employee up to $5,339 for employee coverage only (9.5% of the employee's income). In this case, the employer is allowed to charge premiums for dependents in excess of the 9.5% threshold thanks to a HHS ruling. The employee has no recourse but to pay the premiums cost or be hit with the individual mandate penalty for not insuring his/her dependents.
And because the employee has an offer of affordable healthcare through his/her employer, he/she is not eligible to purchase healthcare through an exchange.
Single parents have enough challenges........adding an additional financial burden on some is not fair.
