Can you still sign up for health insurance and avoid a fee in 2015?

Monday, March 02, 2015

Did you owe a fee for not having health insurance in the 2014 tax year? You may be able to avoid having to pay this fee for 2015.

Go to HealthCare.gov to learn if you are eligible to sign up for health insurance through the marketplace (exchange) for 2015. Even though open enrollment has closed, depending on your situation, you may still be able to sign up. That way, you’ll avoid bigger penalties next year. This special enrollment period runs from March 15 to April 30.

Next year, if you didn’t have health insurance coverage during 2015, you’ll pay the higher of these two penalty amounts:

• 2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan*.
• $325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.

Remember, when you sign up for Affordable Care Act coverage through the exchange, your income may make you eligible to receive subsidies to make insurance premiums more affordable.

If you suspect you'll owe a fee and you haven't done your taxes yet, check whether you qualify for a fee exemption.

Check these out:

• A free tool to determine if you qualify for an exemption from fees.
• Do you qualify for 2015 coverage during this special enrollment period?
   

*For 2014, the annual national average premium for a bronze level health plan available through the marketplace is $2,448 per individual ($204 per month per individual), but $12,240 for a family with five or more members ($1,020 per month for a family with five or more members). Source: IRS

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Consumer Action empowers low- and moderate-income and limited-English-speaking consumers nationwide to financially prosper through education and advocacy.