February Newsletter: ACA Updates, 1095-A and 1095-B Tax Information, TWP Financial is a Fiduciary

Dear Clients,
If you read the news, you will already know that the direction the ACA is headed changes daily. In the past week alone we have learned that:

  • Over 1/3 of people in the nation did not know that Obamacare was the same as the ACA. Read
  • Healthcare signups are down 4% amid the uncertainty. Read
  • GOP stalls on replacement ideas for the ACA, trying to figure out which parts of the plan will stay the same and which parts will change. Read here and here.
  • Your ACA coverage will not be affected for 2017. Read.

It’s clear that it is quite busy in Washington, D.C.. Congressional Republicans attended a two-day retreat in Philadelphia to work on their agenda for the coming year, which included details for the repeal and replacement of the Affordable Care Act.  They will use a three-step process:

  1. A fast-track process to repeal the law by the end of March
  2. Pass a replacement plan
  3. Use the Administration's regulatory authority to stabilize the market.

However, given the way everything is trending, this could very much be up for debate. Nevertheless, this will not affect your coverage for 2017.

California has its own statutory framework - distinct and apart from the federal law.  California law will stand, even if the federal laws are changed, replaced, or repealed, unless the federal statute also dictates a dismantling of California law. We will continue to keep you informed as events unfold.
What is the difference between Forms 1095-A, 1095-B?

Tax time is almost here. Covered California clients will receive a 1095-A. Off-exchange Blue Shield clients will be sent a 1095-B in the following week and off-exchange Anthem clients will receive their 1095-B by end of month.

Covered California explains the different forms as such:  The 1095 forms are filed by Covered California (1095-A), other insurers such as Medi-Cal, Anthem, Blue Shield (1095-B), or by an employer (1095-C). Keep in mind the 1095 forms are filed by health coverage providers, so individuals won’t have to fill these out themselves. Please see the IRS website for more information.

Medicare 1095-B information. According to the Medicare website, if you had Part A coverage you will receive a 1095-B. Form 1095-B provides information that you may need to complete your Federal income tax return. Please refer to the Medicare.gov website here and please also be sure to speak to your CPA or tax advisor. Read here
TWP Financial is a Fiduciary
Also in the news as of late is the question of what will happen to the Fiduciary Rule now that Trump wants to scrap the rule altogether. What is the rule?

The Fiduciary Rule was created under Obama to protect consumers with retirement accounts by preventing advisors from acting in any way but as a fiduciary. Meaning, it would become illegal and unethical for advisors to give bad advice or sell products that would knowingly not be in the clients best interest. Hard to believe this isn't already the case. The US Labor Department is now going to delay the rule governing the advice that brokers can give about retirement investments. Read about it more here

What is the difference between a broker and a fiduciary? Here is a very handy Youtube video to illustrate the difference. Watch here.  

TWP Financial always has and always will act in our client’s best interest because we are Fiduciaries. What does this mean? It means that by law we are required to offer financial advice that is in the client’s best interest, not ours. Read up on the fiduciary rule here

If you need to speak with us or make an appointment please call 424-288-4254 or make an appointment online here.
To your Health and Financial Well-Being in 2017,

TWP Financial