Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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The lowdown...

  • Wealthy taxpayers must get insurance coverage or pay the individual shared responsibility payment
  • High income earners must pay additional Medicare taxes on income above $200,000
  • Incomes greater than 400 percent of the Federal poverty line do not qualify for Marketplace financial assistance
  • Wealthy subscribers can buy qualified health insurance year-round

Wealthy individuals must comply with the requirements of the Affordable Care Act or pay the individual shared responsibility payment. They can purchase insurance on the federal Marketplace or on a state exchange. With incomes more than 400 percent of the federal poverty guideline, these individuals will not qualify for Obamacare financial assistance.

The wealthy benefit tremendously from the reform provisions of the Affordable Care Act; they get no-cost prevention services and essential health benefits.

The universal acceptance reform helps the wealthy as every other applicant, and rules against price discrimination ensure equal treatment for all subscribers. They cannot be turned down for prior health conditions, and they cannot get higher rates because of the rules against using individual factors to set rates.

If you have a high income and want to find health insurance that covers all your necessary treatments and services without overcharging you, enter your zip code above and answer some questions to receive FREE personalized quotes today!

Individual Mandate

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The individual mandate applies to every eligible resident without regard to income level. The law imposes a tax penalty on those that fail or refuse to get qualified health insurance. The mandate exempts persons with no or low reportable income.

Persons that do not meet the minimum tax filing threshold do not have to get coverage to avoid the penalty. Like everyone else, they need coverage to avoid a financial disaster. The individual mandate applies to high-income earners defined as those with incomes above 400 percent of the federal poverty line.

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Universal Acceptance

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The Affordable Care Act guarantees acceptance and removed the choice from private insurers. Prior to the reforms, sick and low-income persons and low chances of getting insured. This applied to sick children many of whom had debilitating illnesses requiring extensive medical care. They had low chances of getting insured and keeping any existing insurance against benefit ceilings, rate hikes, and cancellations.

Open Season

The open enrollment period is the annual time for getting health insurance. Every eligible person can purchase insurance and get coverage. The residents with incomes more than 400 percent of the federal poverty guideline can purchase insurance on a state exchange or the federal marketplace.

Those with high incomes can get the advantages of a wide selection and assistance from trained staff. High-income earners will not qualify for financial assistance including the below-listed items:

  • Premium tax credits
  • Cost-sharing reduction subsidies
  • Marketplace Health Savings Accounts

After Open Enrollment Season

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The rule is that no one can purchase health insurance after the close of the open enrollment period. The exceptions fall into two categories, namely, special enrollment periods and extensions. Technically, it is possible to purchase qualified health insurance after the open enrollment period.

One can purchase through an agent, broker or directly from an insurance provider. The part that one cannot get after open enrollment is the financial assistance benefits contained in the Affordable Care Act.

The high-income earners usually cannot qualify for that type of financial assistance. They can buy qualified insurance on a year-round basis and can often get customized terms and provisions that meet their preferences.

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Price Discrimination

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The Affordable Care Act protects the wealthy against price discrimination based on impermissible factors like pre-existing conditions and ability to pay. When setting prices, insurers must use a form of community rating and not use highly individualized practices like medical underwriting. Plans must treat subscribers equally with the limited exceptions indicated below.

  • Age
  • Location is an impactful factor on price and availability of medical services
  • Tobacco usage
  • Individual versus family plans
  • Type of Obamacare plan purchased (Platinum, Silver, Gold, or Bronze)

Buying on the Marketplace or State Exchanges

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Wealthy individuals can buy policies on the Obamacare marketplace and state exchanges. They can purchase during the open enrollment period or any special enrollment period for which they qualify.

Wealthy shoppers can benefit from the arrangement of policies and options on the Obamacare Marketplace and state exchanges.  Whether they purchase there or not, they can get counseling and advice from experienced staff. Comparison shopping is an effective tool for finding high-value insurance on or off the Obamacare system.

Buying Outside of Obamacare

Buying insurance outside of the Obamacare Marketplace and state exchanges is a good choice for wealthy individuals. They can get the customized coverage that they might prefer and the reform benefits and protections incorporated into every policy by the Affordable Care Act.

The best advice for wealthy shoppers is to use comparison shopping and search outside of the Obamacare system. There are few benefits of the system for wealthy buyers that are not incorporated int every policy by the reforms

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Taxes on Upper Incomes

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The Affordable Care Act taxes single taxpayers with high incomes above $200,000 and couples making more than $250,000 annually. They must pay a 0.9 percent Medicare payroll tax. The levy attaches to the amount earned per year above the $200.000 and $250,000 thresholds.

These high-income persons may also have to pay a surcharge of 3.8 percent on investment income above those thresholds. These special taxes raise important funds for Obamacare benefits. The tax began in the calendar year 2013.

Health Savings Accounts

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Wealthy individuals can reduce taxation and create a fund for paying medical expenses. The Health Savings Accounts have no upper-income limit, and wealthy individuals can take advantage of the generous terms. One can purchase a qualified health plan that is a High Deductible Health Plan. The Health Savings Account holds funds for reimbursement of out-of-pocket expenses.

  • Pre-tax dollars to fund the accounts
  • 100 percent deduction for contributions to the HSA
  • Unused funds can roll-over to subsequent years.

Higher Income means More Options

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Health insurance for the wealthy is a simpler proposition than buying on the Obamacare Marketplace or state exchanges. The wealthy, as do the rest of the population, benefit from the important reforms of the Affordable Care Act. They cannot get turned down, and they cannot get charged more because of their individual characteristics.

The wealthy get Obamacare benefits whether purchasing on the exchanges or outside of the Obamacare Marketplace.

The law imputes the reforms into every qualified health plan. Comparison shopping is an important tool for buyers of every income range. Comparison shopping provides facts and insights needed to select the best value in health insurance.

Enter your zip code below to compare health insurance quotes for free and get the best deals from your state’s top providers!