(Bloomberg) — Americans who find out they'll be paying a tax penalty for not having health insurance last year will get a chance to avoid the fee in 2016, after the feds announced an extra enrollment period starting next month.
The 2010 health law required all Americans to carry health insurance starting last year. People who didn't get covered will face a tax penalty for the first time this year, of as much as 1 percent of their income. If they remain uncovered this year, the fine may as much as double. Income tax filings are due April 15.
While sign-ups for 2015 coverage ended on Feb. 15, in a special grace period consumers will have a second chance to get coverage this year from March 15 through April and avoid next year's bigger fines, Andy Slavitt, principal deputy administrator at the Centers for Medicare and Medicaid Services, said on a conference call Friday.
Recommended For You
"Our intention that this is one year only for people who have not been in the communication loop," Slavitt said.
The Treasury Department has estimated as many as 6 million people may owe the penalty for not carrying insurance in 2014. About 11.4 million people have signed up for insurance this year under the Patient Protection and Affordable Care Act. Slavitt said he doesn't know how many might be eligible.
Those that use the special enrollment period must attest that they paid the fine for last year already and that they first became aware of the consequence for not having health insurance while filing their taxes.
Consumers in 37 states that rely on healthcare.gov instead of state-run insurance marketplaces will be eligible for the extra sign-up. States that operate their own marketplaces will need to decide whether they'll hold their own special enrollment.
The administration will also add a feature to healthcare.gov that helps consumers determine whether they're eligible for a waiver from having insurance so they can avoid the tax penalty.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
