Volunteer Income Tax Assistance (VITA) Certification Practice Test

Is Milton required to make a shared responsibility payment under ACA if he is covered by Medicare?

1. Yes, because he has Medicare.

2. No, he is not required to make a payment.

3. Only if he receives additional income.

4. Depends on the state he lives in.

The correct answer is: No, he is not required to make a payment.

Milton is not required to make a shared responsibility payment under the Affordable Care Act (ACA) if he is covered by Medicare. The ACA established the individual mandate requiring most Americans to have health insurance, but there are exceptions. Individuals enrolled in Medicare are considered to have qualifying health coverage, which meets the requirements of the ACA. Since Medicare is a form of government-sponsored health insurance primarily for individuals aged 65 and older or for some younger individuals with disabilities, those who are enrolled in it do not face penalties associated with the individual mandate. This means Milton is exempt from any shared responsibility payment because he is already covered by a plan that fulfills the ACA's coverage requirements. Other options, such as needing to pay based on additional income or state residency, are not pertinent for someone covered by Medicare. The ACA stipulates that coverage types like Medicare, Medicaid, and certain other government programs meet the mandate, confirming Milton’s exemption from any payment requirements.