My ACA/Obamacare Experience...
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ObamaCare fines loom for uninsured
ObamaCare fines loom for uninsured
By Elise Viebeck
12/17/14 06:00 AM EST
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 don’t have health insurance ... you put your financial security at risk,” the mailer states. “That’s 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.
The message is part of a shift in focus for the health insurance industry as ObamaCare continues a relatively smooth second year of enrollment.
Last fall, issuers were hesitant to mention the mandate as technical glitches plagued HealthCare.gov and stopped some consumers from enrolling.
The penalties for going without health insurance were also more modest, with uninsured people due to pay $95 per adult or 1 percent of family income this tax season. Under the second-year enrollment rules, families that forgo insurance could end up owing $1,000 or more.
Tax preparation companies are touting their expertise in handling the IRS’s ObamaCare rules as they gear up for a new filing season.
Part of the pitch is helping consumers avoid the mandate through an exemption if they are eligible.
A variety of hardship qualifications makes this route possible for many people, including those who experienced the death of a close relative, had their previous health plan canceled or saw an increase in necessary expenses due to caring for an aging family member.
“There are a lot of people who will qualify for an exemption,” said Avalere Health CEO Dan Mendelson. “If a company can save someone the 2 percent fine on $50,000 of income, that is significant.”
Firms are also offering to help current enrollees understand how changes in income can affect their tax credits to buy coverage. In some cases, they can also help the uninsured select health plans.
In promotional materials, H&R Block and Jackson Hewitt Tax Service say they can provide consumers relief, arguing that healthcare reform is making tax planning more difficult.
“The ACA [Affordable Care Act] has changed the landscape of both healthcare and tax,” H&R Block states online, inviting consumers to calculate their mandate penalty or receive a “tax impact analysis” when they become a client.
Jackson Hewitt urges consumers to stop by one of its locations, promising that their employees “work harder to keep up with the latest tax law changes to protect you from possible penalties — not everyone else does.”
The marketing around the healthcare law is taking flight at a time when surveys show the public remains deeply confused about the mandate.
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.
“You have to remember that most people will sign up for this benefit in the very last weeks before they have to, so you wouldn’t want to message negatively until the end,” he said. “They have a choice about whether to motivate by fear or by benefit. I think the fear might come late.”
Anne Filipic, president of the campaign-style group Enroll America, said the mandate is coming up more frequently this year.
“We will always lead our conversations with the great benefits that are available to consumers,” Filipic said in a joint interview with The Hill and The Wall Street Journal last month.
“As for the fine, that is something that we will communicate to consumers about as well. It’s about delivering the facts.”
http://thehill.com/policy/healthcar...ion/227364-obamacare-fines-loom-for-uninsured
ObamaCare fines loom for uninsured
By Elise Viebeck
12/17/14 06:00 AM EST
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 don’t have health insurance ... you put your financial security at risk,” the mailer states. “That’s 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.
The message is part of a shift in focus for the health insurance industry as ObamaCare continues a relatively smooth second year of enrollment.
Last fall, issuers were hesitant to mention the mandate as technical glitches plagued HealthCare.gov and stopped some consumers from enrolling.
The penalties for going without health insurance were also more modest, with uninsured people due to pay $95 per adult or 1 percent of family income this tax season. Under the second-year enrollment rules, families that forgo insurance could end up owing $1,000 or more.
Tax preparation companies are touting their expertise in handling the IRS’s ObamaCare rules as they gear up for a new filing season.
Part of the pitch is helping consumers avoid the mandate through an exemption if they are eligible.
A variety of hardship qualifications makes this route possible for many people, including those who experienced the death of a close relative, had their previous health plan canceled or saw an increase in necessary expenses due to caring for an aging family member.
“There are a lot of people who will qualify for an exemption,” said Avalere Health CEO Dan Mendelson. “If a company can save someone the 2 percent fine on $50,000 of income, that is significant.”
Firms are also offering to help current enrollees understand how changes in income can affect their tax credits to buy coverage. In some cases, they can also help the uninsured select health plans.
In promotional materials, H&R Block and Jackson Hewitt Tax Service say they can provide consumers relief, arguing that healthcare reform is making tax planning more difficult.
“The ACA [Affordable Care Act] has changed the landscape of both healthcare and tax,” H&R Block states online, inviting consumers to calculate their mandate penalty or receive a “tax impact analysis” when they become a client.
Jackson Hewitt urges consumers to stop by one of its locations, promising that their employees “work harder to keep up with the latest tax law changes to protect you from possible penalties — not everyone else does.”
The marketing around the healthcare law is taking flight at a time when surveys show the public remains deeply confused about the mandate.
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.
“You have to remember that most people will sign up for this benefit in the very last weeks before they have to, so you wouldn’t want to message negatively until the end,” he said. “They have a choice about whether to motivate by fear or by benefit. I think the fear might come late.”
Anne Filipic, president of the campaign-style group Enroll America, said the mandate is coming up more frequently this year.
“We will always lead our conversations with the great benefits that are available to consumers,” Filipic said in a joint interview with The Hill and The Wall Street Journal last month.
“As for the fine, that is something that we will communicate to consumers about as well. It’s about delivering the facts.”
http://thehill.com/policy/healthcar...ion/227364-obamacare-fines-loom-for-uninsured
Millions to owe Obamacare tax penalty
Millions to owe Obamacare tax penalty
By Tami Luhby @Luhby
January 28, 2015: 4:03 PM ET
Were you uninsured in 2014? It's time to pay the piper!
Some 3 million to 6 million Americans will have to pay an Obamacare tax penalty for not having health insurance last year, Treasury officials said Wednesday. It's the first time they have given estimates for how many people will be subject to a fine.
The penalty is $95, or 1% of income above a certain threshold (roughly $20,000 for a couple). So you could end up owing the IRS a lot of money.
Take a married couple with $100,000 in income - their bill comes to $797, according to the Tax Policy Center ACA penalty calculator.
The penalty for remaining uninsured rises to the larger of $325 or 2% of income in 2015.
Related: Obamacare 2.0 sign ups hit 9.5 million
As millions of Americans sit down in coming weeks to compile their tax returns, they'll have to contend with Obamacare's health insurance mandate for the first time.
Some three-quarters of the nation's 150 million taxpayers have health insurance through their jobs or government programs and will simply have to check a box on the Form 1040.
Another 15 million to 30 million people will request and be granted an exemption to the mandate by filing Form 8965. Those who aren't subject to the insurance requirement include undocumented immigrants, low-income Americans and those for whom insurance premiums were more than 8% of their household income.
Finally, between 4.5 million and 7.5 million taxpayers received subsidies for insurance premiums when they signed up for coverage on Obamacare exchanges. They will have to use Form 8962 to reconcile their actual 2014 income with the amount they estimated when they applied for a policy in late 2013 or early 2014.
Those who underestimated their income either will receive smaller tax refunds or will owe the IRS money.
Treasury officials declined to forecast how many people may be in this situation. But H&R Block projects 3.4 million taxpayers will have to pay back part of their premiums.
Of course, those who overestimated their 2014 income may get a healthier-than-expected refund. And some will see no change.
http://money.cnn.com/2015/01/28/news/economy/obamacare-tax-penalty/index.html?iid=Lead
Millions to owe Obamacare tax penalty
By Tami Luhby @Luhby
January 28, 2015: 4:03 PM ET
Were you uninsured in 2014? It's time to pay the piper!
Some 3 million to 6 million Americans will have to pay an Obamacare tax penalty for not having health insurance last year, Treasury officials said Wednesday. It's the first time they have given estimates for how many people will be subject to a fine.
The penalty is $95, or 1% of income above a certain threshold (roughly $20,000 for a couple). So you could end up owing the IRS a lot of money.
Take a married couple with $100,000 in income - their bill comes to $797, according to the Tax Policy Center ACA penalty calculator.
The penalty for remaining uninsured rises to the larger of $325 or 2% of income in 2015.
Related: Obamacare 2.0 sign ups hit 9.5 million
As millions of Americans sit down in coming weeks to compile their tax returns, they'll have to contend with Obamacare's health insurance mandate for the first time.
Some three-quarters of the nation's 150 million taxpayers have health insurance through their jobs or government programs and will simply have to check a box on the Form 1040.
Another 15 million to 30 million people will request and be granted an exemption to the mandate by filing Form 8965. Those who aren't subject to the insurance requirement include undocumented immigrants, low-income Americans and those for whom insurance premiums were more than 8% of their household income.
Finally, between 4.5 million and 7.5 million taxpayers received subsidies for insurance premiums when they signed up for coverage on Obamacare exchanges. They will have to use Form 8962 to reconcile their actual 2014 income with the amount they estimated when they applied for a policy in late 2013 or early 2014.
Those who underestimated their income either will receive smaller tax refunds or will owe the IRS money.
Treasury officials declined to forecast how many people may be in this situation. But H&R Block projects 3.4 million taxpayers will have to pay back part of their premiums.
Of course, those who overestimated their 2014 income may get a healthier-than-expected refund. And some will see no change.
http://money.cnn.com/2015/01/28/news/economy/obamacare-tax-penalty/index.html?iid=Lead
source: Vox
Obamacare is costing way less than expected
n January 2010, the Congressional Budget Office projected that the federal health spending would total a bit more than $11 trillion between 2011 and 2020.
Today, the Congressional Budget Office thinks it made a mistake. Costs are coming in lower-than-expected, and the CBO's newest projections suggest the federal government will spend $600 billion less on health care than they predicted back in 2010.
So far, so good: projections are always wrong by at least a bit, and it's nice to have the extra $600 billion in America's pocket.
But here's the incredible thing: as Paul Van de Water, a health care expert at the Center on Budget and Policy Priorities, points out, the January 2010 projection didn't include any of the spending associated with Obamacare. The latest projections include all of the spending associated with Obamacare.
<center>
Center on Budget and Policy Priorities</center>
So even adding all the spending in Obamacare, the CBO is projecting the federal government will spend $600 billion less on health care than the agency expected in 2010, when they weren't counting even a dollar of the spending in Obamacare.
That's simply an amazing fact. It's like finding you have thousands more in the bank than you expected at the beginning of the year — even though, at the beginning of the year, you didn't know you were going to buy a new car.
Obamacare costs money. Just less than everyone thought.
Make no mistake: Obamacare spends a lot of money on its tax credits and Medicaid expansion. It recoups some, but not all, of that new spending with hundreds of billions of dollars in Medicare cuts, which reduce federal health spending (the bulk of the remainder is made up with tax increases, but they're irrelevant for this calculation). But back when the law was passing, Republicans argued up, down and sideways that the Congressional Budget Office was sharply underestimating the amount of money Obamacare spends.
In fact, the CBO overestimated the cost of Obamacare — and by quite a lot. In April 2014, they marked their Obamacare projection down by more than $100 billion.
Behind the rosy numbers is the sharp slowdown in health-care spending growth, some of which is the result of the recession, but much of which increasingly looks real. If Obamacare gets any credit for that slowdown, it's very partial credit at best — the beginning of the trend predates the law's existence.
Some health-care experts, however, think Obamacare is playing a real role in making sure the trend sticks. Drew Altman, president of the Kaiser Family Foundation, argues that "we have always seen the health-care marketplace respond by lowering costs when there is the threat of impending health reform legislation or government action on costs."
What's different this time, he says, is that "we have not only the threat [of health reform legislation] but the reality" — in other words, Obamacare, with all its payment reforms and Medicare experiments, won't permit the health industry to go back to business as usual. And so the health-cost slowdown is sticking.
Whether that's right remains to be seen. But the simple fact is that the federal government is spending less on health care with Obamacare than it expected to spend without Obamacare. That's remarkable.
Obamacare is costing way less than expected
n January 2010, the Congressional Budget Office projected that the federal health spending would total a bit more than $11 trillion between 2011 and 2020.
Today, the Congressional Budget Office thinks it made a mistake. Costs are coming in lower-than-expected, and the CBO's newest projections suggest the federal government will spend $600 billion less on health care than they predicted back in 2010.
So far, so good: projections are always wrong by at least a bit, and it's nice to have the extra $600 billion in America's pocket.
But here's the incredible thing: as Paul Van de Water, a health care expert at the Center on Budget and Policy Priorities, points out, the January 2010 projection didn't include any of the spending associated with Obamacare. The latest projections include all of the spending associated with Obamacare.
<center>
Center on Budget and Policy Priorities</center>
So even adding all the spending in Obamacare, the CBO is projecting the federal government will spend $600 billion less on health care than the agency expected in 2010, when they weren't counting even a dollar of the spending in Obamacare.
That's simply an amazing fact. It's like finding you have thousands more in the bank than you expected at the beginning of the year — even though, at the beginning of the year, you didn't know you were going to buy a new car.
Obamacare costs money. Just less than everyone thought.
Make no mistake: Obamacare spends a lot of money on its tax credits and Medicaid expansion. It recoups some, but not all, of that new spending with hundreds of billions of dollars in Medicare cuts, which reduce federal health spending (the bulk of the remainder is made up with tax increases, but they're irrelevant for this calculation). But back when the law was passing, Republicans argued up, down and sideways that the Congressional Budget Office was sharply underestimating the amount of money Obamacare spends.
In fact, the CBO overestimated the cost of Obamacare — and by quite a lot. In April 2014, they marked their Obamacare projection down by more than $100 billion.
Behind the rosy numbers is the sharp slowdown in health-care spending growth, some of which is the result of the recession, but much of which increasingly looks real. If Obamacare gets any credit for that slowdown, it's very partial credit at best — the beginning of the trend predates the law's existence.
Some health-care experts, however, think Obamacare is playing a real role in making sure the trend sticks. Drew Altman, president of the Kaiser Family Foundation, argues that "we have always seen the health-care marketplace respond by lowering costs when there is the threat of impending health reform legislation or government action on costs."
What's different this time, he says, is that "we have not only the threat [of health reform legislation] but the reality" — in other words, Obamacare, with all its payment reforms and Medicare experiments, won't permit the health industry to go back to business as usual. And so the health-cost slowdown is sticking.
Whether that's right remains to be seen. But the simple fact is that the federal government is spending less on health care with Obamacare than it expected to spend without Obamacare. That's remarkable.
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