Health Care Coverage and the ACA: Just Check the Box

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  • By 71st FTW Public Affairs
  • 71st FTW Public Affairs
VANCE AIR FORCE BASE, Okla. --  With the implementation of the Patient Protection and Affordable Care Act (ACA) in 2010, TRICARE beneficiaries may have questions about how it affects them. The ACA and TRICARE are very different, governed by two different pieces of legislation, so changes in one have no effect on the other.

The intent of the Affordable Care Act, also known as Obamacare, was to provide affordable health insurance options to everyone. This is the first major difference between TRICARE and the ACA. TRICARE is not health insurance; it is a federal health care entitlement program only for eligible uniformed service members, retirees and their families.

The ACA required a set of minimum essential benefits for commercial health insurance. Before the passage of the ACA, TRICARE already provided most of these benefits such as cost-free screenings, vaccinations and counseling.

One ACA provision not previously addressed by TRICARE was to allow children to remain on their parent's health insurance up to age 26. The 2011 National Defense Authorization Act created the authority to implement the TRICARE Young Adult program. TYA is a premium based program that restores TRICARE coverage to adult children up to the age of 26 after they lose their TRICARE coverage due to age.

TRICARE is a benefit established under law as the health care program for the uniformed services, retirees and their families. The ACA did affect change in health care coverage for many Americans, but the legislation did not apply directly to TRICARE. For more information, visit the TRICARE website.

How will the ACA affect me this tax season?

The TV and radio airwaves have been abuzz with serious voices telling Americans how difficult this tax season may be because of the Patient Protection and Affordable Care Act.

Do not believe the hype; you can meet the health care coverage reporting requirement as easily as checking a box on your Form 1040, 1040A or 1040EZ.

Effective Jan. 1, 2014, the ACA required most Americans, including TRICARE beneficiaries and DoD employees, to have minimum essential health care coverage. Those without the minimum coverage must pay a tax penalty for each month that they, and the other individuals listed on their tax forms, did not have coverage during 2014. The good news is, if you and your dependents are entitled to TRICARE or purchased TRICARE or Federal Employee Health Benefit Plan coverage, all you have to do is "self-attest" you had coverage on your 2014 tax return.

The IRS has released clarifying information in publication 5187, "Health Care Law: What's New for Individuals & Families." This publication provides information about some of the tax requirements of the ACA. Other ACA-related publications and tax forms are available at www.irs.gov/ACA.

Military beneficiaries who are only eligible for space available care in military clinics or hospitals (examples are parents and parents-in-law or former members seeking care for line-of-duty conditions) do not have TRICARE coverage and would normally be subject to the tax penalty if they do not have minimum essential coverage from a non-DoD source. However, those beneficiaries who are only eligible for space available care have received a special exemption from the tax penalty for tax year 2014. These beneficiaries should document their status on Form 8695, Health Coverage Exemptions, and file it with their federal tax returns.

For those who do not have TRICARE or FEHB coverage or lose DoD sponsored coverage, you're encouraged to explore other health care options through the Health Insurance Marketplace. Open season began Nov. 15, 2014, and runs through Feb. 15, 2015.

(Information for this story is courtesy of www.tricare.mil)