PPACA-Individual Mandate

PPACA-Individual Mandate

Individual Mandate

The individual mandate will be effective from the year 2014, and according to the mandate all individuals will be able to obtain the health insurance and will be paying a penalty for the non compliance of the mandate. People who will be obtaining the health insurance will have to maintain the minimum required essential coverage for them and their dependents. There are some people who are free from the mandate and the penalty and people can also receive financial support for paying the health cost, healthcare service cost and the insurance coverage (Mach, Scales & Mulvey, 2013).

Minimum Essential Coverage

According to the rules and regulations, the minimum required coverage is defined as the coverage which is under the sponsored plan of government and it includes Medicare part A, Medicaid, Medicaid advantage plan, TRICARE, TRICARE life program, Children's health insurance program (CHIP), peace corps program and the department of Veterans affairs (VA) healthcare program. The coverage which is an employer sponsored plan and it are with respect to any employee includes the coverage that is offered by any government plan employer. There are other plans which are offered in the large and small groups of business in a state and any method which is formulated by the state. Other included plans of coverage can be different business plans, self funded student health plans, grandfather health plans, benefits risk pool and medical assistance for refugees that are supported by the administration of children and families (Mach, Scales & Mulvey, 2013).

Penalty

It is obligatory for citizens to maintain the minimum required essential coverage that is outlined for them and the dependents. People who do not fulfill the mandate have to pay some penalty because of noncompliance. The penalty can be calculated as higher of the followingThe amount ...