$95 Won’t Convince Nannies to Buy Health Insurance

Nannies that Don’t File Taxes Won’t Be Able to Get Government Subsidized Health Insurance (But They Might Qualify for Medicaid)

Here are the State-by-State Premiums Under the Health Care Law published in the New York Times.

I’ve often tried to explain the benefits of paying taxes to nannies who prefer to be paid in cash. Yet, it is estimated that 80% to 90% of domestic workers don’t pay taxes.

I feel the same attitude of not considering long-term affects of their financial decisions will keep many nannies (that already don’t pay taxes) from buying health insurance despite the fact that the Affordable Health Care Act requires American’s to be covered by health insurance by January 1, 2014.

The Internal Revenue Service (IRS) will be penalizing those who don’t have health insurance starting January 1, 2014. But the penalties are actually intended for businesses with employees, not families. Since the penalties are so low ($95 per adult, $47.50 per child and up to $285 per family or 1% of income which ever is greater) it won’t sway most nannies that don’t pay taxes to purchase health insurance. And Congress has not provided the IRS with any other enforcement capabilities.

If no taxes are filed, the nanny is already treated the same as an illegal immigrant. Undocumented nannies (American’s that don’t pay taxes) cannot get disability insurance, unemployment benefits, and social security. Nannies that don’t file taxes won’t be able to get the government subsidized health insurance either.

But, in states in which Medicaid will be expanded to include younger citizens more nannies that are paid under-the-table will be applying and getting government assistance through Medicaid. Click here to see if the state you live in will be expanding Medicaid coverage.

I still urge all nannies to consider purchasing health insurance now that basic and essential health insurance premiums are cheaper than ever.

Nannies will not be penalized much by the government for not purchasing health insurance, but everyone is at risk of a catastrophic accident, illness, or injury. Without health insurance coverage nannies could be “penalized” by a lifetime of debt and credit unworthiness.


References:

http://www.nytimes.com/interactive/2013/09/24/us/health-care-premiums.html?emc=eta1&_r=1&

http://kff.org/health-reform/state-indicator/state-activity-around-expanding-medicaid-under-the-affordable-care-act/

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