Veterans and the Affordable Care Act
At
Gardner and Billing CPAs, PLLC, we’ve had clients ask if they are exempt from
the insurance requirements of the Affordable Care Act if they are veterans. The
following is taken directly from the Veterans Administration website.
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What happens if
I do not have health coverage?
You
do not have to pay a fee if you have coverage that meets a minimum standard
(called “minimum essential coverage”). VA is required by law to notify the IRS
of Veterans’ enrollment status in the VA health care system in 2014. Veterans
who are not enrolled in the VA health care system and who do not have
qualifying medical insurance, unless given an exemption, will be charged a fee
beginning on their 2014 federal income tax return, which most people will file
in the spring of 2015.
The
fee is prorated based on the amount of time in the calendar year the Veteran
does not have medical insurance that meets minimal essential coverage
standards. VA is committed to ensuring Veterans are aware of the opportunities
to meet the health care reform law’s minimum essential standards for coverage
either through enrollment with VA or through the purchase of insurance offered
by the Health Insurance Marketplace. The fee either will be a flat fee or a
percentage of your taxable household income, depending on which amount is
higher. The fee will be phased in according to the schedule below:
$95
or 1% of your taxable income in 2014
$325
or 2% of your taxable income in 2015
$695
or 2.5% of your taxable income in 2016
Exemptions
from the fee will be granted under certain circumstances. For more information
on these exemptions, visit www.healthcare.gov.
Will VA notify
the IRS of health care coverage provided to each Veteran and eligible
beneficiary?
Yes.
Beginning in 2015, VA will send Veterans and eligible beneficiaries a letter
and IRS form 1095B which will provide the details of the health care coverage
provided by VA for the previous year. As required by law, VA also will notify
the IRS.
If I’m enrolled
in a VA health care program, do I meet the requirement for health care
coverage?
Yes.
If you are enrolled in any of VA’s programs below, you have coverage under the
standards of the health care law:
Veteran’s
health care program
Civilian
Health and Medical program (CHAMPVA)
Spina
bifida health care program
What are the
benefits of enrollment in VA health care?
Enrollment
in VA health care means you have:
·
Medical
care rated among the best in the U.S.
·
Immediate
benefits of health care coverage. Veterans may apply for VA health care
enrollment at any time.
·
No
enrollment fee, monthly premiums, or deductibles. Most Veterans have no
out-of-pocket costs. Some Veterans may have to pay small copayments for health
care or prescription drugs.
·
More
than 1,700 places available to get your care. This means your coverage can go
with you if you travel or move.
·
Met
the new requirement to have health care coverage that meets the minimum
standard.
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In
summary, if you are a veteran and are enrolled for health insurance coverage
under the VA or the Health Insurance Marketplace, you meet the insurance
requirements of the Affordable Care Act. If you do not have insurance under the VA
health care system and do not have qualifying medical insurance, unless given
an exemption, you will be charged a fee beginning on your 2014 federal income
tax return.
The
bottom line is, veterans are not exempt from the Affordable Care Act insurance requirements.
