Tag Archives: open enrollment

Understanding the ACA Obamacare Tax Penalty For the Uninsured

health-insuranceWhen filing your 2016 tax returns, you could face a sizeable fine if you and/or your family are without health insurance.

The Affordable Care Act mandates that anyone that has gone without health insurance for a span of three months or more is subject to paying a fine. The penalty this year has increased to equal the greater amount of $695.00 or 2.5% of an adult’s income. For every child under 18 without health insurance, the penalty is half that of an adult’s.

This penalty is deducted from any income tax refund you may be eligible for. It would be unfortunate to be burdened by such a penalty and have it get in the way of the potential tax refund you look forward to receiving every year.

There are, however, exceptions to the rule.

You may qualify for an exemption if you fall under any of the following categories:

  • Individuals and families who fall under the income-tax federal threshold would be exempt, or receive the necessary subsides to offset the costs of the health insurance.
  • If you are unemployed and are unable to find coverage costing less than 8% of your adjusted gross income, you would be exempt from penalties as well.
  • You may also qualify for a hardship if you are homeless or have been evicted in the last six months.

We encourage you to review this information carefully so that you can make good decisions for you and your family.

Please note, Open Enrollment for 2017 begins on November 1st  2016.  Feel free to contact us today to discuss the options that best fit the needs of you and your family, as the penalty will be the same for next year.

Health Insurance Special Enrollment Period For New Yorkers Facing Tax Penalties

Did you file your taxes for 2014 and realize you were penalized for not having health insurance? If you were, you now have a second chance to avoid a penalty for 2015. If you did not enroll for health insurance during this year’s open enrollment, and were fined a federal penalty for not having health insurance you still have the opportunity to enroll for health coverage through the Special Enrollment Period starting March 1 and ending April 30, 2015.

Read the following article on the Special Enrollment Period extended beyond Open Enrollment Period to accommodate those individuals and families penalized:

Press Release: NY State of Health Announces Special Enrollment Period for Uninsured New Yorkers Facing Tax Penalties

You are welcome to contact us if you have any questions or concerns. Our Life and Health Department can assist you with this any of your Health Insurance needs. Life and Health Account Executive, Narima Prashad, can be reached by phone or email: (718) 386-5050 x 7069 | NPrashad@jpins.com.

Health Insurance Open Enrollment for 2015 begins November 15th

If you do not have health insurance at this time, November 15th is the quickly approaching date for you to take advantage of the opportunity to be eligible to purchase a policy.  Did you know that as of January 1st 2015, any adult without health insurance earning above the Affordable Care Act (ACA)  income threshold, is responsible to pay a penalty of $95.00 or 1% of their annual income (whichever is higher)?   Did you know that there is a limited time for you to apply for coverage?

So maybe you lost the health insurance sponsored by your employer or you no longer qualify to be on your parent’s plan due to your age.  Beginning on November 15, 2014 you have a chance to be proactive and purchase health insurance for an upcoming January 1, 2015 effective date.  This is called “Open Enrollment”.  If you haven’t applied for coverage by February 15th, 2015 you will need to wait until the next Open Enrollment period scheduled for November 15, 2015.

What is Open Enrollment?

This is a period during which an individual can apply for health insurance with fewer restrictions than at any other time during the year. It is important for those individuals who are not covered under their employer’s insurance, or simply are uninsured, to pay close attention and remember the dates for Open Enrollment:  November 15, 2014 through February 15th, 2015. During Open Enrollment, insurance companies are supposed to waive underwriting guidelines and any requirement for evidence of insurability. When Open Enrollment ends individuals seeking coverage need to be “qualified” for Special Enrollment, or they will have to wait until the next scheduled open enrollment period on November 15, 2015! Special Enrollment or qualifying events include, but are not limited to: divorce, marriage, birth, death and loss of employer sponsored coverage.

•How can individual insurance be purchased?

A number of Health Insurance Companies are offering Individual health coverage either directly through health carrier websites, via the New York State Health Exchange, or off the Exchange through independent insurance brokers.

• What penalties will you be responsible to pay if you are not covered?

In 2014: $95.00 or 1% of income (individual)

$285.00 or 1% of income (family)

In 2015: $325.00 or 2% of income (individual)

$975.00 or 2% of income (family)

In 2016: $695.00 or 2.5% of income (individual)

$2085 or 2.5% of income (family

Although the penalty may seem minimal in 2014, as you can see, it will increase for the upcoming years. Keep in mind that you will be responsible to pay the greater amount; percentage of income, or fixed dollar amount.

Health_topic_imageSome people feel that the premium for a health insurance plan seems unnecessary and excessive for a young healthy individual. However, we strongly suggest that you keep in mind that “accidents do happen” and the cost of an emergency room visit, x-rays, MRIs, hospital stays and doctor visits add up and can be devastating to you and your family’s financial situation.

We urge you to take advantage of this opportunity to purchase health insurance during this year’s Open Enrollment.

By Narima Prashad
Account Executive