Health Insurance and Your Taxes
Nora Rhoades, Family & Youth Development Agent
Since 2014, nearly all Americans are required to have health insurance. The Affordable Care Act, which made having health insurance mandatory, requires that you are insured for at least nine months out of every year, or you will have to pay a penalty at tax time for being uninsured. There are some exemptions to the requirement. These could include certain hardships, financial status, life events and membership to some groups.
In the current income tax season, taxpayers now have to show proof of health insurance enrollment – for at least nine months of the year in 2015 – on their tax documentation. For those without the required amount of coverage in tax year 2015, the penalty is 2 percent of household income, or $325 per adult and $162.50 per child under 18 up to a maximum fine of $975 – whichever is the greater amount. For those without coverage in 2016, the penalty will be the higher amount between 2.5 percent of household income, or $695 per adult and $347.50 per child to a maximum fee of $2,085. Each year, the fines will continue to increase.
Do you still need health insurance for 2016? Consumers who did not enroll in the marketplace before the open enrollment deadline may have other options to meet the nine-month legal requirement for health insurance coverage if their plans begin by April 1, 2016. Options available now typically have certain requirements for consumers to meet to enroll in coverage.
The marketplace is still available for those who experience a qualifying life event this year. Qualifying events include losing job-based or other insurance, moving out of state, or changing family composition such as getting married or divorced, losing a spouse, or adding a child. Enrollees with a qualifying life event have 60 days after the event to sign up for insurance through the marketplace. This is considered a special enrollment period. Visit www.healthcare.gov for details.
Job-based health insurance is an option if the employer provides coverage. Talk to your employer to learn about options that may be available.
KanCare, Kansas’ Medicaid program, is available to low-income U.S. citizens and lawfully present immigrants who are over 65, up to age 19, or disabled. Children and pregnant women might be eligible for KanCare if their household incomes are less than 245 percent of the federal poverty level. Visit www.kancare.ks.gov for details.
For adults age 65 and older, Medicare remains the health insurance option. Certain younger people with disabilities and people with end-stage renal disease and amyotrophic lateral sclerosis, commonly called ALS or Lou Gehrig’s disease, will continue to get their health insurance through this federal program. Visit www.medicare.gov for details.
Other public programs include TRICARE, Veterans Affairs (VA) or the Indian Health Service (IHS) for eligible enrollees.
Enrolling in private health insurance is another option available at any time, though an open enrollment period may apply.
To learn more about how to enroll in the marketplace or KanCare, call the marketplace, available 24/7, at 800-318-2596. The Kansas Health Institute also has numerous resources on its website at www.khi.org.
Reference: Health insurance enrollment numbers higher overall in Kansas, K-State Research and Extension News, http://www.ksre.k-state.edu/news/news-stories/2016-news-releases/february/enrollment-numbers022416.html
Since 2014, nearly all Americans are required to have health insurance. The Affordable Care Act, which made having health insurance mandatory, requires that you are insured for at least nine months out of every year, or you will have to pay a penalty at tax time for being uninsured. There are some exemptions to the requirement. These could include certain hardships, financial status, life events and membership to some groups.
In the current income tax season, taxpayers now have to show proof of health insurance enrollment – for at least nine months of the year in 2015 – on their tax documentation. For those without the required amount of coverage in tax year 2015, the penalty is 2 percent of household income, or $325 per adult and $162.50 per child under 18 up to a maximum fine of $975 – whichever is the greater amount. For those without coverage in 2016, the penalty will be the higher amount between 2.5 percent of household income, or $695 per adult and $347.50 per child to a maximum fee of $2,085. Each year, the fines will continue to increase.Do you still need health insurance for 2016? Consumers who did not enroll in the marketplace before the open enrollment deadline may have other options to meet the nine-month legal requirement for health insurance coverage if their plans begin by April 1, 2016. Options available now typically have certain requirements for consumers to meet to enroll in coverage.
The marketplace is still available for those who experience a qualifying life event this year. Qualifying events include losing job-based or other insurance, moving out of state, or changing family composition such as getting married or divorced, losing a spouse, or adding a child. Enrollees with a qualifying life event have 60 days after the event to sign up for insurance through the marketplace. This is considered a special enrollment period. Visit www.healthcare.gov for details.
Job-based health insurance is an option if the employer provides coverage. Talk to your employer to learn about options that may be available.
KanCare, Kansas’ Medicaid program, is available to low-income U.S. citizens and lawfully present immigrants who are over 65, up to age 19, or disabled. Children and pregnant women might be eligible for KanCare if their household incomes are less than 245 percent of the federal poverty level. Visit www.kancare.ks.gov for details.
For adults age 65 and older, Medicare remains the health insurance option. Certain younger people with disabilities and people with end-stage renal disease and amyotrophic lateral sclerosis, commonly called ALS or Lou Gehrig’s disease, will continue to get their health insurance through this federal program. Visit www.medicare.gov for details.
Other public programs include TRICARE, Veterans Affairs (VA) or the Indian Health Service (IHS) for eligible enrollees.
Enrolling in private health insurance is another option available at any time, though an open enrollment period may apply.
To learn more about how to enroll in the marketplace or KanCare, call the marketplace, available 24/7, at 800-318-2596. The Kansas Health Institute also has numerous resources on its website at www.khi.org.
Reference: Health insurance enrollment numbers higher overall in Kansas, K-State Research and Extension News, http://www.ksre.k-state.edu/news/news-stories/2016-news-releases/february/enrollment-numbers022416.html
