How Health Care Reform Will Affect You

The discussion about health care reform in the United States seems endless and often very confusing. What will be covered? Who will be eligible? And perhaps most important of all-what will it cost? Putting politics aside, here is a rundown exploring how health care changes could affect you and your family.

Mandate-An Authoritative Command

If health insurance becomes required by law, just like car insurance is for most people who own vehicles, the government would then charge a penalty-about 2.5% of the individual's adjusted gross income-to those who are not insured. Of course, if you qualify as low-income, you wouldn't be penalized under the mandate.

Coverage-Inclusion Within a Policy

Just like individuals, employers would be subject to a tax penalty unless they offer their employees health insurance coverage. This rule would apply to employers with a payroll of more than $500,000. Between 65% and 70% of insurance costs would be covered by insurance plans according to the current bills before Congress. Premiums would be regulated on the individual market so neither your age nor any pre-existing conditions would matter.

Exchange-Taking One Thing in Return for Another

If you're employed by a company with a payroll smaller than $500,000, an insurance exchange would give you the chance to buy into state or nationwide health insurance markets. This would also apply to people who are not otherwise eligible for coverage for other reasons.

Public-Affecting All the People

Like Medicare, a public health care plan would be run by the government. It would be available for those who are not eligible for Medicare or Medicaid, or who don't have other means of insurance through an employer. If your household is at 150% of the U.S. poverty level, you would be eligible for coverage under Medicaid. Medicare is available for those age 65 and older, as well as anyone under age 65 with a disability.

Subsidy-A Gift of Money

Americans who earn up to 400% of the national poverty level would be given subsidies to help them purchase health insurance through the insurance exchange. Likewise, small businesses would receive a tax credit if they provided their workers with health insurance options..

SunTrust is unable to offer tax or legal advice. Please consult with your tax and legal advisors.