ObamaCare Penalty

                                  ObamaCare Penalty Clarified

In my previous post the individual mandate penalty for not enrolling in ObamaCare was described as $95 for an individual.  I omitted one important detail.  The penalty is actually the higher of $95 or one percent of your income!

Here is a summary of penalties (greater of):

   2014  Single $95 or 1%; Family $295 or 1%
   2015  Single $325 or 2% ; Family $975 or 2%
   2016  Single $695 or 2.5%; Family $2085 or 2.5%
The maximum penalty is capped at three time the individual penalty (eg:95 x 3 = 295). Penalties will be included in your annual income tax and enforced by the IRS.

So it’s easy to see after 2014 the penalty (tax) gets very serious.

There are numerous exceptions and hardship exemptions. “Gaming” the rules is likely to occur. See the link to Forbes magazine below.

Please do you own tax research and plan accordingly.

There are two rules for exemptions for living out of the US. One is residence out of US for 330 days in any 12 month period. The other is the “Physical Presence Test” requiring you to live outside of the US for a complete year plus other requirements .

Further details are available at: http://www.forbes.com/sites/mikepatton/2013/10/28/obamacare-penalties-and-exemptions/

So that is another reason to promptly consider your plans for a possible new life internationally.

Ecuador Health Insurance Update

                         Ecuador Health Insurance

While completeing the six question GringoTree insurance survey, it occured to me that readers may appreciate an update on health insuarnce. As a retired health insurance broker and former CPA, I reviewed policies available after moving to Cuenca in 2011. We expect to remain in Cuenca long term and do not plan to use US Medicare unless absolutely necessary. Since we are self employed with US income, our premiums are deductible on our 1040 tax return (medical expenses are not deductibe).

Salud: $10,000 ded. Comprehensive major medical for $104/month/couple, includes $4.50 office visit (healthy couple 63/57).

Salud: unlimited lifetime cancer $38/mo couple to age 120+

Santa Inez: network 90%, Rx, office and hospital, $80 deductible, $6000 max per illness (offsets $10,000 deductible on Salud plan above)) $40/mo/couple premium, life ins, ambulance, accident,etc.

Coopera: $2 office and dental, 80% max of $400/yr for $5/month/couple. Great for blood tests, prescriptions, routine needs.

Quality may vary with providers. Some speak good English.

We bought coverage while healthy because we expect Medicare to become very restricted under ObamaCare. Ecuador is our lifetime plan even though we will be forced to pay massive Medicare premiums under ObamaCare. The cost of Medicare premiums will nearly double starting in 2014.  ObamaCare must be purchased in 2014 if you are in the US over 35 days per year and under 65!
 Or you may pay a large penalty every year.

For further details  review our other postings under our “Health Insurance” headings.

Wait a minute. What is the exact language of the IRS regulation?
“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the regulation states.
“Bronze will be the lowest tier health-insurance plan available under Obamacare — after Silver, Gold, and Platinum,” CNS explains. “Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016.”

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