(PRWEB) July 02, 2012
Zane Benefits, which provides businesses and health insurance professionals with comprehensive and flexible defined contribution health benefits and private exchange solutions, today published new information for those wanting to avoid the Individual Mandate tax penalty. After reading this article, readers will be able to tell that avoiding this tax will be no easy feat.
The Individual Mandate requires most individuals to purchase health insurance, or else pay a penalty on their tax return each year. Last week, the Supreme Court found Health Care Reform's "Individual Mandate" to be constitutional because the PENALTY is really a TAX. The intention of the individual penalty is to reduce the "Free Riding" effect in the health insurance market (a free rider is someone who is healthy and does not purchase health insurance until they need it).
BACKGROUND ON INSURANCE MANDATE'S TAX PENALTY
Effective January 1st, 2014, certain individuals (referred to as "applicable individuals") will be required to maintain health insurance that meets a minimum standard (referred to as "minimum essential coverage") for themselves and their dependents. "Applicable individuals" who fail to maintain "minimum essential coverage" will be required to pay a tax "penalty" on their tax return.
According to the bill, the following citizens are able to avoid the penalty tax.
(1) Those with a religious exemption can avoid the health insurance tax -- Citizens could claim that their religion (whether that be Christianity, Judaism, Islam or something they make up), does not allow them to purchase health insurance.
(2) Those in an Indian Tribe can avoid the health insurance tax -- Members of Indian tribes are not subject to the penalty. Here's a WikiAnswers thread about how to join an Indian Tribe.
(3) Those in a Health Care Sharing Ministry can avoid the health insurance tax -- Some associations cost $99-$135 per member per month.
(4) If a person is not a U.S. citizen, they don't have to pay the penalty. -- Citizens could renounce their U.S. citizenship to avoid the health insurance tax. Here's an article about renouncing one's U.S. Citizenship.
(5) Incarcerated persons can avoid paying the penalty while they are in jail.
As readers can surmise, avoiding this tax will not be a simple task.
About Zane Benefits, Inc.
Zane Benefits, Inc, a software company, helps insurance brokers, accountants, and employers take advantage of new defined contribution health benefits and private exchanges via its proprietary SaaS online health benefits software. Zane Benefits does not sell insurance. Using Zane’s platform, insurance professionals and accountants offer their clients a defined contribution plan with multiple individual health insurance options via a private health exchange of their choice.