On the other hand, with the loss of the IRS penalty for the underinsured, non-ACA-compliant plans may become more attractive, which again could be disruptive, especially for the individual insurance market. Therefore, it remains unclear what precise impact the TCJA will have on future premiums. Prudence suggests the need to plan for higher premiums. Alternative coverage structures should also be considered, such as higher-deductible plans coupled with health savings accounts.
Conclusion
Much has been written about Phase I of the TCJA. Now it is time to focus on Phase II as well. With just a quarter left in the year, alimony, medical expenditures and individual health insurance must be reconsidered—quickly. Decisions made in the next few months can have a substantial impact this year and in the years to come.