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The Affordable Care Act and America’s Young Adults

Your employer has provided you with access to health insurance, so the Affordable Care Act (ACA) may not directly apply to you. But what about the recent graduates that are still trying to get their footing in this rocky economy? With the decision to uphold the Affordable Care Act (ACA) and the individual mandate, what should they be considering? For young adults under age 26, they can still be covered under their parent’s insurance plan as long as they don’t have jobs that offer insurance and are claimed as dependents. Beginning in 2014, children under age 26 can remain on their parent’s plan even if they are offered insurance through their own employer. Since the law was signed in 2010, over 3 million young adults have been added to their parents’ plan.

Let’s fast forward a couple of years to where that young adult is no longer covered by this provision. Now it’s time for them to get their own policy. On January 1, 2014, the ACA will require health insurance exchanges to be fully certified and operational. A health insurance exchange is a centralized location for individuals of any age to shop for their policy. Health insurance exchanges will not be the insurer of these individuals. Instead, they are the conduit between participating insurance companies and the consumer. Their purpose is to provide the consumer with information to compare costs and benefits of health insurance companies, and most importantly, only insurance companies that will guarantee underwriting will participate in the exchange.

If January 1, 2014 comes and goes without an individual getting their own policy, they will be penalized the greater of $95 or 1% of their income. Starting in 2016, the cost of not having insurance will be the greater of $695 or 2.5% of their income. Other changes going into effect include insurers not being allowed to deny coverage due to pre-existing conditions and insurance companies no longer being able to put limits on coverage. While these changes are slated to go into effect either immediately or phased in over the next couple of years, it’s possible that some provisions will get overturned or amended. In which case, you should contact your Wealth Manager if you have any questions on how you or young adults could be affected by this act.

 

Important Disclosure Information

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request. This article is not a substitute for personalized advice from RegentAtlantic. This information is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

This article is based on the current law and is subject to change. Please consult with your Wealth Manager or advisor of your choosing prior to making any changes to your current health insurance plans or electing a new plan.

Important disclosure information

Please remember that different types of investments involve varying degrees of risk, including the loss of money invested. Past performance may not be indicative of future results. Therefore, it should not be assumed that future performance of any specific investment or investment strategy, including the investments or investment strategies recommended or undertaken by RegentAtlantic Capital, LLC (“RegentAtlantic”) will be profitable.

Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request.

This article is not a substitute for personalized advice from RegentAtlantic. This article is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

RegentAtlantic does not provide legal or tax advice. Please consult with a legal and or tax professional of your choosing prior to implementing any of the strategies discussed in this article.

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