Last week, the Senate Finance Committee introduced health care legislation. Take a look at the Young Invincibles Analysis of how the Baucus Bill would impact young people.
The “Young Invincible” Plan
A “young invincible” plan would be offered as an option in the State Health Exchanges for individuals 25 years or younger, offering catastrophic coverage where policy holders would pay up to the current Health Savings Account limit for care ($5,950 for individuals), but exempting prevention benefits from the deductible.
Young Adults Will Be Required To Purchase Insurance
Beginning in 2013, all individuals would be required to purchase health insurance coverage (“individual mandate”).
Fees Will Apply for Those Young Adults Who Fail To Buy Coverage
$750/year/individual in fees for taxpayers whose modified adjusted gross income is between 100% and 300% of the federal poverty line ($10,830 – $32,490 in 2009).
$950/year/individual in fees for taxpayers whose modified adjusted gross income is above 300% of the FPL.
Exemptions Will Allow Some Young Adults To Avoid the Mandate
Individuals are exempt from the mandate if the lowest cost premium available exceeds 10% of their adjusted gross income, or if they are at or below 133% of FPL.
Low-Income Young Adults Will Receive A Tax Credit To Reduce Costs
Starting in 2013, individuals with incomes between 134% and 300% of the FPL (expanding to 100-300% in 2014) would receive a tax credit in order to purchase health insurance from a health exchange, with the credit level set so that premiums for those at 100% of the FPL would cap at 3% of income while those at 300% of the FPL would have premiums capped at 13% of income.