State officials announced on Feb. 20 a Covered California special enrollment period to accommodate taxpayers who are now just realizing they are subject to a fine without health coverage.
“We don’t want anyone to feel blindsided by the shared responsibility payment,” Covered California Executive Director Peter Lee said in a news release. “That’s why we are establishing this limited-time special-enrollment that builds on the broader availability of coverage for Californians who have a change of circumstance making them eligible outside of open enrollment.”
From Feb. 23 to April 30, consumers are eligible to apply for health coverage during special enrollment by attesting they were unaware of the tax penalty by selecting “Informed of Tax Penalty Risk” on the application’s drop-down menu.
In California, up to 600,000 individuals face a tax penalty for being without health insurance in 2014. While those who were uninsured last year cannot avert penalties by signing up through Covered California by April 30, there is still time to avoid greater fines for 2015.
“We’re giving them an extended window,” said Covered California spokesman James Scullary. “We know this is all new for everybody.”
Under the Affordable Care Act, people without health coverage must pay $95 per adult and $47.50 per child with a family maximum of $285, or 1 percent of their adjusted gross income—whichever is greater—for 2014. This year, the penalty rises to $325 per person in a household or 2 percent of their income—whichever is greater.
Some people opted not to purchase health insurance through Covered California, despite federal subsidies, because of costs.
Officials stress that people can purchase health insurance with income that may otherwise be used to pay tax penalties. Someone without coverage earning $40,000 would pay a penalty of about $300 for 2014, and $600 in 2015, Covered California stated.
“Instead of sending your money to the IRS, you can use it to provide protection and peace of mind for you and your family,” Scullary said.
California extended its enrollment deadline the same day federal officials decided to create a special enrollment period for HealthCare.gov, the federal insurance exchange, which runs from March 15 to April 30.
The state’s health insurance marketplace had its original open enrollment deadline set on Feb. 15. The deadline was extended to Sunday, Feb. 22, for those who had already begun but not yet completed the application process.
More than 474,000 people signed up through Covered California in the last open enrollment period. On Feb. 15 alone, about 36,000 people signed up for health insurance Covered California, officials said.
Last year, last-minute signups crashed government websites and clogged phone lines. While this year fared better, a number of problems still need to be solved, said Anthony Wright, executive director of Sacramento-based Health Access California, according to The Sacramento Bee.
Among issues encountered included the sending of 100,000 erroneous tax forms in January to people who had purchased private coverage, a mistake that could delay tax filings or force households to amend their taxes.
The state also sent out 800,000 incorrect 1095-A tax forms, which contain information regarding tax subsidies.
“We certainly apologized for any inconvenience,” Scullary said. “It’s all a new process and this is the first year there’s a connection between health care and taxes.”
Updated forms should be sent out in the next few weeks, Scullary said.
Government officials said the sign-up period was not extended because of incorrect tax forms, but rather to help those who have not yet enrolled.
So far, 1.4 million Californians have signed up for private insurance, a figure that falls short of the agency’s goal of 1.7 million. (With reports from Associated Press, Los Angeles Daily News and The Sacramento Bee)
(www.asianjournal.com)
(San Francisco February 27, 2015 Sec. A pg.4)
