With so many questions surrounding the Affordable Care Act (ACA), many household employers and employees are asking for information about how they can obtain health insurance for nannies (and other household employees), so the individuals can avoid paying any fees for not having coverage. The good news is that employees have an opportunity to shop the health insurance marketplace next month during the open enrollment period.
Open enrollment begins on November 15, 2014, and ends on February 15 of 2015. This is an opportunity for individuals who have not yet enrolled in health insurance coverage to obtain coverage – otherwise there may not be another chance to be covered in 2015 until the next open enrollment period sometime next year. For those enrolled in a 2014 Marketplace plan, the benefit year ends December 31, 2014. To continue health coverage in 2015, the current health plan must be renewed, or a new health plan can be chosen through the Marketplace during the 2015 Open Enrollment period.
A potential benefit for nannies regarding the monthly health insurance premium is a tax credit, which depends on household size and income. According to Healthcare.gov, if your income falls within the following ranges you’ll generally qualify for a premium tax credit. The lower your income is within these ranges, the bigger your credit:
- $11,670 to $46,680 for individuals
- $15,730 to $62,920 for a family of 2
- $19,790 to $79,160 for a family of 3
- $23,850 to $95,400 for a family of 4
- $27,910 to $111,640 for a family of 5
- $31,970 to $127,880 for a family of 6
- $36,030 to $144,120 for a family of 7
- $40,090 to $160,360 for a family of 8
There are also subsidies that many nannies may be able to take advantage of. The Kaiser Family Foundation has created a subsidy calculator that provides health insurance premium and subsidies estimates for people purchasing their own health insurance in the exchanges created by the ACA. Enter your income, age, and family size to estimate your eligibility for subsidies and how much you could spend on health insurance. You’ll be able to see if you qualify for the premium tax credit or cost-sharing subsidies.