Covered California is offering a special enrollment opportunity for consumers who did not know or understand there was a tax penalty for being uninsured in 2014 or who learned they may face the tax penalty for 2015.
“For the first time, health care and taxes now are linked arm in arm,” Covered California Executive Director Peter V. Lee said. “The law requires everyone to be insured, and if you’re not, you may face a significant financial penalty when you file your taxes this year.”
Until April 30, 2015, consumers are eligible to apply for health coverage during special enrollment by attesting that they did not realize there was a tax penalty.
To attest to this fact, they can select “Informed of Tax Penalty Risk” when filling out an application at CoveredCA.com.
The new tax penalty for being uninsured — known as the “shared responsibility payment” — motivated many consumers to purchase insurance this year during the November to February open-enrollment period via Covered California.
Unfortunately, many people who are supposed to purchase insurance may be unaware of the penalty and surprised when they go to their tax preparation professional for help.
“We don’t want anyone to feel blindsided by the shared responsibility payment,” Lee said. “That’s why we are establishing this limited-time, special-enrollment that builds on the broader availability of coverage for Californians who have a change of circumstance making them eligible outside of open enrollment.
“If you didn’t realize the tax consequences of not having insurance, you can enroll in a Covered California plan ... until April 30.”
The tax penalty aside, Californians who have a life-changing event — for example, having a baby, getting married, losing their health-care coverage because they have changed jobs or moving to another area — can qualify for a special-enrollment period through Covered California.
They can sign up for coverage as long as they do so within 60 days of the qualifying life event.
For the first time, consumers filing their taxes this year may be paying a penalty for not having health insurance. And the penalty for going without insurance in 2015 will go up significantly, nearly doubling.
During the final weeks of open enrollment, Covered California served consumers who literally went straight from their tax adviser to a certified enroller after learning they would lose hundreds of dollars because they were uninsured in 2014.
“We know this will continue throughout the upcoming weeks as more and more people do their taxes and discover how this new era of health care works,” Lee said.
“We don’t want there to be any surprises, and we want to make sure that everyone who is eligible gets covered.”
Consumers may enroll at CoveredCA.com and can find the nearest certified enrollment counselor or certified insurance agent to help them enroll. Consumers also can call the Covered California Service Center at 1-800-300-1506, where a representative will help them.
To get across the finish line for open enrollment, with coverage effective March 1, however, consumers cannot enroll without the help of an agent, a counselor or Covered California Service Center.