At the beginning of March, CMS announced a special enrollment period (SEP) for individuals and families who did not enroll for health coverage in 2014, and were subject to the fee or
“shared responsibility payment” when they filed their 2014 taxes.
By enrolling during this SEP, affected consumers may avoid further tax penalties on their 2015 tax filing. To qualify for this new SEP, consumers need to attest that they paid a penalty for not enrolling in health coverage in 2014, and they cannot have signed up for 2015 coverage by the time the SEP begins.
The Tax Penalty SEP is being offered through April 30, 2015, which means affected consumers have approximately two weeks to secure on- or off-marketplace health coverage to avoid
further tax penalties when filing their 2015 tax returns.
Who is eligible? Consumer who:
- Did not enroll in coverage for 2015 through the Federally-facilitated Marketplaces (FFMs)
- Were subject to the Shared Responsibility Payment for 2014 ($95 or 1 percent of income, whichever is greater)
- 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
What are the effective dates?
- If a consumer enrolls in coverage on or before the 15th of the month, coverage will be effective on the first day of the following month.
- If a consumer enrolls in coverage on or after the 16th of the month, coverage will be effective on the first day of the next following month.
Individuals taking advantage of this SEP may still owe a fee for the months they were uninsured and did not receive an exemption in 2014 and 2015. This SEP is designed to allow such individuals the opportunity to get covered for the remainder of the year and avoid additional fees for 2015
Questions? Contact Franchise Benefit Solutions at 1-800-536-2230.