Passed in 2010, the Affordable Care Act overhauls the U.S. healthcare system and affects nearly all taxpayers, many employers and various elements of the healthcare industry. The Act represents the most significant change to our healthcare laws since the passage of Medicaid and Medicare in 1965. The new law will be phased in over multiple years spanning 2009 to 2018, with the individual mandate taking effect Jan. 1, 2014. The new healthcare law uses the tax code and tax return in many respects to implement its measures. Intuit® recently hosted a webinar presented by Mike D’Avolio on the Act.

1. Intuit Confidential
What It Means for Individuals and
Small Businesses

2. Intuit Confidential
Meet your host…
2
Mike D’Avolio
Senior Tax Analyst
Accounting Professional Division

3. Intuit Confidential
• Requires individuals be insured
• Complicated and dense!
• Marks a historic precedent

4. Intuit Confidential4
You need to be
insured in 2014
Key Exemptions…
 Financial hardship
 Lowest cost plan exceeds 8% of
your household income
 Your income is below tax-filing
threshold
Individuals without coverage for
less than 3 months
And others…
Without insurance, you
risk incurring a tax
penalty

5. Intuit Confidential5
You’ve got
options…
Employer Broker Medicaid Health
Exchange

6. Intuit Confidential6
Businesses with 50 or more full-time employees
must offer it
• Penalty: $2K/yr. for every employee
starting with the 31st
employee
Employer-sponsored insurance
Businesses with fewer than 50 full-time employees
are exempt
Tax credits available for employers who offer
insurance
• Eligibility: ≤25 employees; avg. wages ≤$50K;
employer covers ≥50% of coverage
Affordable options are available (e.g. HRA, HSA)

7. Intuit Confidential7
Health Exchanges
Public exchanges will be available in all 50 states
Plans have four levels of coverage: Platinum, Gold, Silver and Bronze
Subsidies available for those that are financially eligible
All plans offer “minimum essential coverage”
Private exchanges are an alternative

8. Intuit Confidential8
Are you eligible for a subsidy?
Determine your household size
Determine your household income
If it falls within the guidelines relative to the Federal
Poverty Line, you’re eligible:
Persons in
household
Federal Poverty Line
($/yr.)
Income Level Premium as a Percent of
Income
1 $11,170 Up to 133% FPL 2% of income
2 $15,130 133-150% FPL 3 – 4% of income
3 $19,090 150-200% FPL 4 – 6.3% of income
4 $23,050 200-250% FPL 6.3 – 8.05% of income
5 $27,010 250-300% FPL 8.05 – 9.5% of income
6 $30,970 300-400% FPL 9.5% of income
7 $34,930
8 $38,890
1
2
3
Stay tunedfor an Intuitsubsidycalculator!

9. Intuit Confidential9
Can’t afford insurance?
17%†
83%††
Meet Mary, a school teacher and a single mother with one child. She
earns $45K a year. Based on her subsidy, the state covers 17% of her
premium:
% of Premium Paid by Mary
Assumes annual premium of $5,160. †
Amounts to $885; † †
Amounts to $4,275

10. Intuit Confidential
Common Myths
Misconceptions and Facts About The ACA

11. Intuit Confidential
Myth #1
The penalty for not having insurance
is insubstantial.

12. Fact: The penalty can be significant.
In 2016…
• The penalty is the greater of $695/yr.
OR
• 2.5% of income
Examples:
Family of 4 earning $25K would pay $695
Family of 4 earning $100K would pay $2,500

13. Intuit Confidential
The penalty is phased in over time
13
Flat fee portion % of household
income portion
2014 $95 1%
2015 $325 2%
2016 $695 2.5%

14. Intuit Confidential
Myth #2
I don’t need to do anything until
2014.

15. Intuit Confidential
Fact: There are things you can do this year!
• April 15th
, 2013: Keep your 2012 tax return as it will
determine your subsidy-eligibility
• October 1st
, 2013: You can start enrolling in a insurance
plan on public exchanges
• January 1st
, 2014: Make sure you’re insured!