CMS NEWS
FOR IMMEDIATE RELEASE
February 20, 2015
Contact: CMS Media Relations
(202) 690-6145 | press@cms.hhs.gov
CMS Announces Special Enrollment Period for
Tax Season
Eligible consumers
have from March 15 through April 30 to enroll in coverage
The Centers for Medicare & Medicaid
Services (CMS) announced today a special enrollment period (SEP) for
individuals and families who did not have health coverage in 2014 and are
subject to the fee or “shared responsibility payment” when they file their 2014
taxes in states which use the Federally-facilitated Marketplaces (FFM). This
special enrollment period will allow those individuals and families who were
unaware or didn’t understand the implications of this new requirement to enroll
in 2015 health insurance coverage through the FFM.
For those who were unaware or didn’t
understand the implications of the fee for not enrolling in coverage, CMS will
provide consumers with an opportunity to purchase health insurance coverage
from March 15 to April 30. If consumers do not purchase coverage for 2015
during this special enrollment period, they may have to pay a fee when they
file their 2015 income taxes.
Those
eligible for this special enrollment period live in states with a
Federally-facilitated Marketplace and:
- Currently are not enrolled in coverage through the FFM for 2015,
- Attest that when they filed their 2014 tax return they paid the fee for not having health coverage in 2014, and
- Attest that they first became aware of, or understood the implications of, the Shared Responsibility Payment after the end of open enrollment (February 15, 2015) in connection with preparing their 2014 taxes.
The
special enrollment period announced today will begin on March 15, 2015 and end
at 11:59 pm E.S.T. on April 30, 2015. If a consumer enrolls in coverage before
the 15th of the month, coverage will be effective on the first day of the
following month.
This year’s tax season is the first time
individuals and families will be asked to provide basic information regarding
their health coverage on their tax returns. Individuals who could not
afford coverage or met other conditions may be eligible to receive
an exemption for 2014. To help consumers who did not have insurance last
year determine if they qualify for an exemption, CMS also launched a health coverage tax
exemption tool
today on HealthCare.gov and CuidadodeSalud.gov.
"We recognize that this is the first tax
filing season where consumers may have to pay a fee or claim an exemption for
not having health insurance coverage," said CMS Administrator Marilyn
Tavenner. “Our priority is to make sure consumers understand the new
requirement to enroll in health coverage and to provide those who were not
aware or did not understand the requirement with an opportunity to enroll in
affordable coverage this year.”
Most taxpayers, about three quarters, will
only need to check a box when they file their taxes to indicate that they had
health coverage in 2014 through their employer, Medicare, Medicaid, veterans
care or other qualified health coverage that qualifies as “minimum essential
coverage.” The remaining taxpayers - about one-quarter - will take different
steps. It is expected that 10 to 20 percent of taxpayers who were
uninsured for all or part of 2014 will qualify for an exemption from the
requirement to have coverage. A much smaller fraction of taxpayers, an
estimated 2 to 4 percent, will pay a fee because they made a choice to not
obtain coverage and are not eligible for an exemption.
Americans who do not qualify for an exemption
and went without health coverage in 2014 will have to pay a fee – $95 per adult
or 1 percent of their income, whichever is greater – when they file their taxes
this year. The fee increases to $325 per adult or 2% of income for 2015.
Individuals taking advantage of this special enrollment period will still owe a
fee for the months they were uninsured and did not receive an exemption in 2014
and 2015. This special enrollment period is designed to allow such individuals
the opportunity to get covered for the remainder of the year and avoid
additional fees for 2015.
The Administration is
committed to providing the information and tools tax filers need to understand
the new requirements. Part of this outreach effort involves coordinating
efforts with nonprofit organizations and tax preparers who provide resources to
consumers and offer on the ground support. If consumers have questions about
their taxes, need to download forms, or want to learn more about the fee for
not having insurance, they can find information and resources at www.HealthCare.gov/Taxes or www.IRS.gov. Consumers can also call the
Marketplace Call Center at 1-800-318-2596. Consumers who need assistance filing
their taxes can visit IRS.gov/VITA or IRS.gov/freefile
Consumers seeking to take advantage of the
special enrollment period can find out if they are eligible by visiting https://www.healthcare.gov/get-coverage Consumers can find
local help at: Localhelp.healthcare.gov or call the
Federally-facilitated Marketplace Call Center at 1-800-318-2596. TTY users
should call 1-855-889-4325. Assistance is available in 150 languages. The call
is free.
For more information about Health Insurance
Marketplaces, visit: www.healthcare.gov/marketplace
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