What Does Obamacare Hold for 2016?

SCOTTSDALE, Ariz., Nov. 30, 2015 /PRNewswire-iReach/ -- Stonegate Capital Advisors' CEO Jameson Van Houten says that 2016 will be "the" year for Obamacare to take full effect. Taxpayers, investors and financial advisors large and small need to be ready for the sea-change that is in store for the next calendar year.

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Basically, CEO Van Houten says, there will be three key things to look for in terms of Obamacare (the Affordable Care Act) changes. Up until now the ACA provisions have been in a phase-in mode, but 2016 will be the year when the full employer mandate goes into effect, penalties by the IRS go up, and potentially huge rate hikes by insurers go into effect.

Employer mandate

Though the provisions of the new, full-fledged ACA for employers are complicated, the 2016 rules will virtually force those who employ more than 49 workers (who work for more than 29 hours per week) to offer health plans to their employees. If the premium for the health coverage is more than 9.5 percent of a worker's MAGI (modified adjusted gross income), then the employer will be forced to cover the overage. Companies will face stiff fines for non-compliance, Stonegate CEO Jameson Van Houten says.

Personal penalties

The Affordable Care Act intends to make it non-affordable for private citizens to opt out of Obamacare. Whether they want to keep their doctors or not, every U.S. taxpayer who is not exempt will be required to have an approved health plan or else pay the greater of $695 or 2.5 percent of the their MAGI. After 2016, those fines will increase at an inflation-adjusted rate, at least.

Premium hikes

Many insurers are expected to raise their premiums in 2016, some by 40 percent or more, according to Jameson Van Houten, CEO of Stonegate. The Affordable Care Act may end up forcing many U.S. citizens to either opt out of the health system and pay the tax penalty or sign on to a plan they cannot afford. The Affordable Care Act could face a crisis in 2016 if the net effect is higher premiums for some citizens and no insurance at all for others, many of whom will still be on the hook for a giant tax penalty regardless.

About Stonegate Capital Advisors –

Stonegate Capital Advisors is an independent boutique wealth management firm that blends sophisticated institutional portfolio management strategies with a wide range of consulting and planning services.  Stonegate provides a comprehensive suite of investment and wealth management solutions to meet the unique needs of high net-worth individuals, business owners and institutions.  Our research drive is time-tested and we are managed by our investment committee, a team of dedicated advisors with decades of wealth management experience. We seek attractive returns across global capital markets while actively managing risk, minimizing costs, and focusing efficiency. 

We integrate comprehensive financial planning, estate planning and business planning, to offer prudent solutions and actionable advice tailored to your unique circumstances.  The holistic planning approach enables you to evaluate your goals and decisions across multiple areas and periods of importance in your life, building a lasting relationship and truly setting us apart as your trusted advisor.  Our passionate and experienced team is committed to providing you unparalleled and personal advice, service, education, and communication that will exceed your expectations not only today, but also well into the future.

http://stonegateprivateclient.com/

7373 N. Scottsdale Road STE D245

Scottsdale, AZ 85253

Stonegate Capital Advisors is an independent Registered Investment Advisor (RIA).  Securities offered through Crown Capital Securities, LP. Member FINRA/SIPC.  Investment Advisory services offered through Stonegate Capital Advisors.  Stonegate Capital Advisors is not affiliated with Crown Capital Securities, LP.  Past performance is no guarantee of future results, and there is always a risk an investor may lose money.

Media Contact: Jameson Van Houten, Stonegate Capital Advisors, (602) 953-8450, [email protected]

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SOURCE Stonegate Capital Advisors