Special Healthcare Enrollment Period Announced

A special healthcare enrollment period will open from March 15 to April 30 for uninsured tax payers facing a penalty when filing their 2014 return. While these tax payers will still have to pay the “shared responsibility payment” for the 2014 tax year, they will have the opportunity to avoid the fine for the 2015 tax year by enrolling in health insurance coverage in a Federally-facilitated Marketplace.

In order to enroll in insurance coverage during this period, you must have been uninsured in 2014, you must testify that you were unaware of the penalties for being uninsured prior to the marketplace closing on February 15, and you must file your 2014 return and pay the associated fines for being uninsured. The special enrollment period will only open in the 27 states with federally-facilitated marketplaces (including Georgia) — though other states with state-run exchanges, such as California and New York, have announced similar special enrollment periods.

In accordance with the Affordable Care Act, 2014 is the first tax year when tax payers must document their health insurance coverage, file for an exemption (you can use this tool to see if you qualify), or pay a fine. Each individual paying the fine will be charged $95 or 1 percent of their income, whichever is greater. If you remain uninsured this year, the 2015 fines will increase to $325 per tax payer or 1 percent of your income.

You can avoid the 2015 fee by taking advantage of this special enrollment period; however, because the ACA mandates individuals be covered for at least nine months out of the year, some who enroll in health insurance coverage between March 15 and April 30 may still face a partial penalty on their 2015 tax return.

If you have any questions about the tax penalties or new forms associated with the Affordable Care Act, please contact a member of ELM3 Financial Group, and we would be happy to assist you in navigating these new requirements.