As Americans fill out their tax forms over the next several weeks, millions are in for a shock. Those who lacked health insurance last year but could afford to buy it will have to pay $95 or 1 percent of income – whichever is greater – to the government.
Obama administration planning threatened to make this entirely predictable situation worse. But, as of Friday, the U.S. Health and Human Services Department is in the process of ameliorating the sting that some uninsured will soon face. That’s good, but may not go far enough. Obamacare’s calendar was misplanned, and HHS should consider fixing it permanently.
Here’s the issue: The ACA’s penalties for lacking health insurance in 2015 will be much higher than the $95 assessed on those lacking coverage in 2014. Meanwhile, the deadline to get 2015 coverage has passed.
Absent the administration’s new policy, there could have been a large class of people who didn’t have health insurance, had to pay an unexpected penalty for lacking coverage in 2014 and, once they realized their situation, would not have been able to avoid paying another penalty next tax season for lacking coverage in 2015.
Thankfully, the Obama administration will reopen health insurance markets from March 15 to April 30. Though many people won’t be able to avoid one penalty, at least they will have the option of avoiding another next tax season.
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