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Birmingham Bar Association Bulletin - Fall 2013

who receives a premium tax credit or cost-sharing reduction under an insurance exchange for any applicable month. is penalty is called the 4980H(b) penalty. It is triggered when a full-time employee of an ALE that o ers health coverage to substantially all full-time employees is not o ered coverage or o ered coverage that is a ordable or comprehensive. Employer Reporting Requirement (delayed until 2015) In order to assist the IRS in administering the employer shared responsibility provisions, beginning in 2015, ALEs will be required to submit annual reports regarding the terms and conditions of the health care coverage provided to full-time employees. The Individual Mandate (currently scheduled to be effective January 1, 2014) In addition to the issue of Medicaid expansion, the part of the ACA that the Supreme Court ruled on June 28, 2012 was the individual mandate. e Supreme Court found the mandate constitutional under Congress’ taxing powers — not under the Commerce Clause or the Necessary and Proper Clause as was most argued. Beginning in 2014, individuals will be required to have health insurance through an employer-sponsored plan, a government program (such as Medicare or Medicaid), or an exchange. If an individual does not have coverage, they may be required to pay a penalty. e annual penalty for not having minimum essential coverage will be the greater of a at dollar amount per individual or a percentage of the individual’s taxable income and phased in as set forth below: • $95 or 1% of taxable income in 2014; • $325 or 2% of taxable income in 2015; and • $695 or 2.5% of taxable income in 2016. After 2016, the at dollar amount is indexed to in ation. e penalty amount for dependents under the age of 18 is half of the amount. Coverage Mandates Preventive Care For plan years or renewals that begin on or after August 1, 2012, the ACA requires non-grandfathered health plans to cover speci c preventive services without Stronger. Faster. Competitive. With over 50 years of experience, GilsbarPRO is the exclusive administrator for the CNA Lawyers Professional Liability Program in the State of Alabama. CNA is the largest underwriter of lawyers malpractice insurance in the United States and is A-rated by A.M. Best. This combination is your best alternative for peace of mind in today’s challenging environment. Expect Nothing Less. Call The PROs Today. 800.906.9654 • gilsbarpro.com One or more of the CNA insurance companies provide the products and/or services described. The information is intended to present a general overview for illustrative purposes only. It is not intended to constitute a binding contract. Please remember that only the relevant insurance policy can provide the actual terms, coverages, amounts, conditions and exclusions for an insured. All products and services are subject to change without notice. CNA is a registered trademark of CNA Financial Corporation. Copyright (c) 2013 CNA. All rights reserved. Birmingham Bar Bulletin/ Fall 2013 27


Birmingham Bar Association Bulletin - Fall 2013
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