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Your personal and income details will be routed through a new government
entity called the data services hub, which will ping agencies like Social
Security, Homeland Security and the Internal Revenue Service for
verification. The feds will also rely on a major private credit reporting
company to verify income and employment.
How smoothly all this works is one of the big unknowns. It could get
tedious if discrepancies take time to resolve. Tip -- Provide the most accurate estimate of your expected income for 2014. Lowball the number, and you might see a smaller tax refund in 2015. Overestimate and you won't get as big a tax credit now. Most people applying will qualify for a tax credit to help pay premiums. The credits are based on your income and keyed to the premium for a benchmark plan known as the "second-lowest cost silver plan" in your area. With your tax credit, you can finally shop for insurance. Be aware that you'll probably have to live with your decision until the next annual enrollment period. You'll have up to four levels of coverage to consider: bronze, silver, gold and platinum. Plans at every "metal level" cover the same benefits and have a cap of $6,350 a year in out-of-pocket expenses for an individual, $12,700 for families. Bronze plans generally have the lowest premiums, but cover only 60 percent of medical costs on average. Policyholders will pay the difference, up to the annual out of pocket cap. Platinum plans have the highest premiums, but cover 90 percent of costs. Young adults up to age 30 can pick a skinny "catastrophic" plan
-- but you can't use your tax credit on a catastrophic plan. Tip -- Make sure your doctors and hospitals are in the plan you pick. You'll have to check the plan's own website, or better still, call your doctor. Tip -- Your share of the premium could be lower -- even zero -- if you apply your tax credit to a bronze plan. It's because the credit is keyed to the cost of a silver plan, which is generally more expensive. Tip -- Check if you are eligible for "cost-sharing subsidies," in addition to your tax credit. Extra help with out-of-pocket costs is available to people with modest incomes. But only with a silver plan. Head spinning? "Obamacare" is finally here.
[Associated
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