3 On Your Side: Health Insurance Enrollment Deadline Fast Approaching
PHILADELPHIA (CBS) -- With the holidays upon us, the last thing that many of us are thinking about is purchasing health insurance. But if you don't have coverage next year, expect to take a big hit at tax time. 3 On Your Side Consumer Reporter Jim Donovan explains.
The Affordable Care Act requires that all Americans be covered by some sort of health insurance. The federal government even offers financial assistance to people based on their income to help defray the cost. Here's what you need to know since the enrollment deadline is quickly approaching.
In the fourth week of open enrollment, almost 395,000 people selected insurance plans using the healthcare.gov website, totaling over 2 million plan selections since November 1. But the deadline to enroll is fast approaching.
Nancy O'Connor, Regional Administrator for the Centers for Medicare and Medicaid Services says, "If you want coverage for January 1st you have to sign up for health coverage by December 15th or you will not have coverage."
If you've purchased insurance through the federal marketplace it's important to update your personal information on the healthcare.gov site each year even if you're not making any changes to your coverage. According to O'Connor, "If your financial situation changes or your household composition change you could be eligible for more or less financial help, so you don't want to take the chance you'd have a tax liability at the end of the year."
Finally, if you choose not to be covered by health insurance, get ready to pay up in the form of a penalty. O'Connor says, "If you can afford health insurance but you choose not to have coverage in 2016, then you are subject to a fee or penalty when you file your federal income taxes." For 2016 that penalty is substantial. Up to $695 per adult in your household or 2.5 percent of your taxable income, whichever is higher.
Again, December 15th is the deadline to obtain coverage for January 1st. If you miss that deadline, open enrollment is open until the end of January. Beyond that is when the penalties kick in.
For more information visit: www.healthcare.gov
