Yikes! Cost of penalties for no health insurance are going up in 2015

We don’t have health insurance but I was still shocked when my tax guy told me that we have to pay a penalty because we don’t. He also said that the fines for not having health insurance are bigger next year . . . $325 per adult, $162.50 per child or 2% of income up to $975 per family. 

What can I do now?

You, like many other Americans, are learning that there is a cost for not having health insurance. Your tax preparer told you the correct amount of the fines you will pay if you do not have creditable health insurance coverage or an exemption for 2015:

$325 per adult

$162.50 per child

or 2% of income up to $975 per family

The good news is that the Center for Medicare and Medicaid Services (CMS) is providing a Special Health Insurance Enrollment Period through April 30, 2015 that is open to those who did not have health coverage in 2014 and, as a result, will have to pay a penalty when they file their 2014 taxes. There was concern that many people like you are learning only now about the tax penalty when you file your taxes, long after the Affordable Care Open Enrollment closed. Without the special enrollment period there would be no way for you to obtain health insurance and avoid another bigger penalty next year.

You are eligible to enroll before April 30 if:

·         You didn't know until after Open Enrollment ended that the health care law required you and your household to have health coverage, or you didn’t understand how the requirement would impact you and your household

·         You owe or have paid the fee for not having coverage in 2014

·         You aren’t already enrolled in 2015 coverage through the Health Insurance Marketplace

            Those who do not have an exemption and go without health coverage in 2015 will be subject to penalties noted above.

If you want to learn how you can take advantage of this special enrollment period for health coverage, please give me a call at 440-255-5700 or email me. I will review all your options with you and find the right insurance plan to fit your needs and budget. For more information, visit our website at www.mutskoinsurance.com.