Logic Insurance (How to Have the Best Health Insurance?) - We’re only days away from a deadline (February 15, 2015) that could cost you a lot of money if you’re not in compliance. You may have missed hearing about it on the news, but it’s vitally important that you address it. It’s the date when open enrollment through the Health Insurance Marketplace for 2015 ends.
If you don’t have qualifying insurance through some other means, you probably want to get it through the Health Insurance Marketplace (see The Cheapest Health Insurance Providers). If you don’t, you may have to wait until November for the next open enrollment period to open or get insurance through a private company.
Here’s how it works. Under the Affordable Care Act, also known as Obamacare, you are required to have health insurance. As long as you have insurance through your employer, insurance your purchased on your own, Medicare, Medicaid, a Veterans plan or some other qualifying coverage, you have nothing to worry about. You can check to see if your plan qualifies by clicking here.
If you don’t have health insurance you pay a penalty on your tax return at the time you file your income taxes.
If you didn’t have health insurance in 2014, you will pay 1% of your household income or $95 per person – whichever is higher. If you have children under 18, the cost is $47.50 per child. There’s nothing you can do right now about 2014, other than talk to a tax specialist and hope that there’s something that will exempt you from the penalty (see below).
If you don't have health insurance in 2015, the sting of the penalty will be even worse. You’ll get hit with 2% of your yearly household income or $325 per person – whichever is higher, or $162.50 per child under 18.
Getting an Exemption
Like anything involving taxes, there are exemptions and situations where the penalty can be reduced, but you will likely need the help of a tax advisor to figure it all out. You can see if you qualify for an exemption from the penalty by clicking here.
Getting Coverage Between Enrollment Periods
You're out of luck if you missed the deadline, except under certain circumstances when you can still enroll through the Health Insurance Marketplace. If a major life event happens – you have a baby or lose your job, for example – you can get coverage through the Marketplace during non-enrollment periods. Click here to learn more about what the Marketplace calls "qualifying life events."
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