Taxing Issues
There are so many questions that come up when you start talking about Medicare. However most intricacies are out of the scope of this article from a tax professional. Here are some basics to keep in mind.
With so many options available to seniors today it’s important to choose an insurance plan that not only fits your needs but also won’t cost you on your Obamacare tax penalties.
According to the Affordable Care Act, though Medicare, Medicaid, and Medigap all part of the government health system, Medigap does not qualify as an option by itself!
Here are some basics:
Medicare Parts A and B are funded and run by the government while Parts C and D are government-regulated but run by private companies.
While Medicaid is backed by the government, each state runs its own package with different rules and regulations.
Ready for the twist?
Medigap supplements the government plans by filling in the gaps in coverage and is purchased through private insurance companies. There is a guaranteed right to buy this type of policy, but only within six months of enrolling in Part B.
The caveat that unless you don’t buy within that time, insurance companies might refuse to offer coverage because of your health history, can be invoked.
This even get more confusing if you do not qualify for Medicaid!
Under The Affordable Care Act, or Obamacare, the plan was to close the “donut hole” regarding Part D drug coverage, wherein seniors had to begin to pay out of pocket for prescriptions when benefit limits were exceeded.
For those who do qualify:
Medicare isn’t part of Obamacare’s Health Insurance Marketplace, and no one has to replace their Medicare coverage with Marketplace-based health insurance. No matter how you get Medicare, whether through Original Medicare or a Medicare Advantage Plan, you’ll still have the same benefits and security you have now.
If you still have questions about your medical benefits requirements under Obamacare and taxes, contact Edge Tax and Accounting, if we cannot answer your questions we will point you in the right direction!
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