Didn’t Know about the Obamacare Tax Penalty? Enroll in Covered California by April 30 to Avoid the Full Penalty.
|April 27, 2015||Posted by John Connolly under Blog||
Regular open enrollment may have ended for Covered California, but if you or someone you know wasn’t aware of the tax penalty for not having health coverage, you can still avoid the full penalty by enrolling by this Thursday, April 30. So, enroll now!
While you won’t be exempt from the penalty for the part of the year that you’ve already been uninsured, you can avoid paying a larger penalty for not having coverage for the whole year. You can start the enrollment process by clicking here, and click here to remind your friends who are in this situation to check out their options.
Importantly, anyone who attempts to enroll during the special open enrollment period that ends April 30 must attest that they were unaware of the penalty during the enrollment process. And the penalty is getting more important to know about because it’s getting bigger this year. For 2015, it will be $325 per person or 2% of your annual income, whichever is higher. Next year it goes up again. It will be the higher of $650 or 2.5% of your annual income.
It’s important to take advantage of the special enrollment period now, not just because of the penalty, but also because the next chance to get Covered California coverage (maybe with some financial help with premiums, co-pays, and deductibles) won’t come until the next open enrollment period starting on November 15. The only exceptions are for certain life-changing events (such as job changes, births, deaths, divorces, or moving to a new state) that result in a loss of health coverage. For more information about these rules, click here.
Covered California knows that picking a plan and understanding your coverage options can be confusing. Luckily, Covered California Certified Enrollment Counselors are still out there ready to help your or someone you know through the process. You can look for a Certified Enrollment Counselor near you by clicking on this link.