ObamaCare fines loom for uninsured
People without insurance are running out of time to avoid the hefty ObamaCare penalties that the IRS will be handing down in 2016.
Consumers face a Feb. 15, 2015, deadline to buy insurance, after which those without coverage could be hit with fines of $325 per adult or 2 percent of family income, whichever is higher.
Uninsured people looking to escape the penalties are turning to the exchanges before they close, while insurance companies and tax preparers are seizing on the looming tax hit as a business opportunity.
One recent mass mailer from CareFirst BlueCross BlueShield obtained by The Hill warned potential customers in the Washington, D.C., region that going without health insurance coverage would come with a steep cost.
When you dont have health insurance ... you put your financial security at risk, the mailer states. Thats because under the new Affordable Care Act legislation, millions of Americans will have to pay an increased penalty tax of at least 2 percent of their income in 2015 if they go uninsured.
The good news, the letter said, is that CareFirst BlueCross BlueShield has solutions to help people avoid the penalty, including coverage that is compatible with financial assistance or free money from the government that will help qualifying individuals pay for insurance.
The company declined to comment on the mailer.
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Almost half of U.S. adults are unaware they must report their health insurance status on their 2014 tax returns, according to a TurboTax survey released earlier this month.
And while about three in five uninsured people know the law penalizes people without coverage, nearly 90 percent do not realize the 2014 deadline has already passed.
As a result, experts are urging insurers and the federal government to do more to emphasize the mandate this enrollment period.
Mendelson said the insurance industry is talking about the penalties more than last year, though the Obama administration has not yet adopted that approach.
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