​The Individual Mandate

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Health Medical

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The Individual Mandate

The Affordable Care Act (ACA) requires all US citizens and legal residents to obtain qualifying health coverage. In this unit, you will explore the Individual Mandate section of the new health reform law.

Tasks:

  • Explain the Individual Mandate included in the Patient Protection and ACA including the tax penalties that will be imposed if a person or a family does not obtain qualifying health coverage.
  • Analyze the eligibility criteria for exemptions and subsidies to obtain coverage.
  • Explain one policy change or enhancement you would recommend if you were required to ensure success of the Individual Mandate included in the Patient Protection and ACA and justify the intended outcome.

Submission Details:

  • Submit your response in a 4- to 6-page Microsoft Word document formatted in APA style.
  • On a separate page, cite all sources using APA format.

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Explanation & Answer

Attached.

Running Head: INDIVIDUAL MANDATE
Individual Mandate

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INDIVIDUAL MANDATE

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Individual Mandate
Since its amendment in 2014, ACA requires most people to obtain health insurance
coverage or to pay a penalty for lack of compliance. People are required retain minimum
essential health insurance coverage for themselves as well as their dependants. Some people are
however exempt from this mandate as well as the penalty. Other individuals may also require
financial help to assist them pay for health insurance coverage cost as well as the cost of using
health care services (Baker, 2011). 2014 calendar year was the first year whereby people were
expected to be in compliance with the individual mandate requirement. Since the penalties for
noncompliance are primarily assessed by the federal filing process, the first year the penalty was
assessed was in 2015.
Minimum Essential Coverage
Generally, people not exempt from the mandate are obliged to have a minimum essential
coverage in order to evade penalty. The definition of minimum essential coverage is identified
by the statute as well as regulations and primarily includes government-sponsored coverage such
as Medicare alongside as well as private insurance such as employer-sponsored insurance or in
other cases ESI (Huntington et al., 2011).
Penalty
People who fail to comply with the minimum essential coverage mandate ought to pay a
penalty for every month of nonconformity. The noncompliance penalty is determined by two
means; one, as the greater of a percentage of applicable income that is identified as the amount
by which the household income of a person’s household income surpasses the applicable tax
filing threshold for a particular calendar year. Two, as the greater of a flat dollar amou...


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