April 7, 2015 - SACRAMENTO, Calif. — Covered California, state revenue agencies and tax preparers reminded uninsured consumers Tuesday that they still have time to sign up for health coverage to minimize tax penalties for tax year 2015.
The advice came as Californians continue to file their 2014 taxes in advance of the April 15 filing deadline, with some tax filers learning they are paying a penalty because they lacked health insurance in 2014.Covered California has responded by creating a special-enrollment opportunity for consumers who were unaware of the tax penalty. The opportunity allows them to enroll in health coverage through April 30 and thereby minimize even steeper tax penalties taking effect for 2015.
Ordinarily, only consumers who experienced life events such as divorce, a new child or a loss of employer-provided health insurance would be able to sign up outside of open enrollment, which ended Feb. 15, 2015.
“The Affordable Care Act is clear: All who can afford health insurance must buy it, and the good news is that it is more affordable than ever before,” said Covered California Executive Director Peter V. Lee. “It’s important for Californians without health coverage to sign up now to avoid the increasing tax penalty they will face in 2015 if they remain uninsured.”
Lee said that more than 18,000 consumers have taken advantage of the special-enrollment opportunity since it began Feb. 23.
California State Board of Equalization Chairman Jerome Horton, as well as representatives from the California Tax Education Council, H&R Block and Intuit, joined Lee in the reminder to consumers to enroll now or risk going without health coverage for all of 2015 and paying the full penalty unless they’re eligible for an exemption
“I urge all uninsured Californians to sign up for health care through Covered California before the April 30th deadline. All California businesses should encourage their employees to do the same to avoid tax penalties and the high cost of not being insured,” said Horton.
Under the Affordable Care Act, consumers must verify on their tax return that they had health insurance throughout the tax year or face a penalty.
