The Patient Protection and Affordable Care Act passed into law on March 23, 2010. Since that date, there have been changes each year in health insurance, health care delivery and tax requirements. It is these three areas where most people have questions. Here are some of those questions and practical answers.

How can I get covered and avoid the tax penalties? The basic tenant of the Affordable Care Act is this: Beginning January 1, 2014, individuals will be responsible for obtaining "minimum essential coverage" for themselves and their dependents, or pay a penalty. The "minimum essential coverage" requirement can be met any of the following ways:

1. Being eligible for coverage under Medicaid due to expansion of coverage to people with income up to 133% of the Federal Poverty Level. Michigan has voted to expand Medicaid; the current understanding is that it won't be available until April of 2014.
2. Being enrolled in another government program such as Medicare, TRICARE, or Children's Health Insurance Program (CHIP) or Michigan's MiChild.
3. Being insured on your parent's policy. On the majority of insurance plans, young people can remain on their parent's policy until they are age 26 regardless of their work, school or tax dependence status.
4. Being insured through your employer group at work. For many people who are insured through their work (or through their spouse's work) this will be the best value.
5. Purchasing insurance through the "Exchange" or "Marketplace." If an individual is eligible for and wants the premium subsidies offered through the Affordable Care Act, they MUST APPLY for plans though Healthcare.gov.
6. Purchasing health insurance from the company and plan of your choice in the individual market or through a "Private Exchange." People who do not qualify for subsidies will purchase coverage in much the same way as they do today, they WILL NOT APPLY for coverage through Healthcare.gov.

How can I find out if I am eligible for tax credit and/or cost-sharing subsidies?

You can find subsidy calculators at Kaiser Family Foundation www.kff.org. Use your best estimate for your 2013 adjusted gross income or a projection for 2014 and be sure to choose the state that you live in. You will receive a report that tells you one of three determinations; you may be eligible for expanded Medicaid, or you are subsidy eligible (with an estimated annual subsidy amount), or your subsidy would be $0. This is ONLY an estimate and final approval of eligibility and subsidy amount can only be achieved by submitting a Healthcare.gov application.

What are the subsidies and how do they work?

There are two levels of subsidy. The first is a tax-credit that can be applied to reduce your plan premium on a monthly basis or can be taken as a lump sum at the end of the year through your tax return. The second is a reduction in the "cost-sharing" in the actual health plan, meaning you may be eligible to have your deductible, co-insurance and co-pays reduced costing you less out of pocket when you use the plan. Subsidy eligibility is based on household size and income. If you are eligible and offered coverage though work, even if you don't take it, you ARE NOT eligible for subsidies.

What is my penalty if I don't purchase coverage?

In 2014, the penalty for not having coverage is $95 or 1 percent of income, whichever is greater. In 2016, it increases to $695 or 2.5% of income, whichever is greater. The family penalty maximum is three times the per-person flat-dollar penalty ($285 in 2014). The penalty for dependent children without coverage is half the cost of the individual flat-dollar penalty ($47.50 in 2014).

Where can I get help with all of this?

Gabrielle Warner, the guest author of this article is a Marketplace Registered Agent with over 27 years of experience helping individuals, families and employer groups in Michigan to navigate their health insurance decisions. She is owner of Innovative Solutions Agency, Cedar Springs MI and can be reached at (616) 732-9000.

REMINDERS FOR EMPLOYER OBLIGATIONS:

Changes have been made to the reporting requirements for Michigan Unemployment Tax. The requirement to file on-line is being implemented over a four year period. Beginning in 2014, an employer with more than 5 employees will be required to file on-line. In 2015, all employers will be required to begin filing on-line.