Did you purchase health coverage through the California health exchange last year?
If not, are you still uninsured?
If you answered yes to either question, you’ll want to know these important facts about the next Obamacare open enrollment period.
1. For 2016, open enrollment starts earlier and ends sooner than last year.
For 2016, you can enroll in a new marketplace plan — or change your existing plan — from November 1, 2015, through January 31, 2016. If you want or need new coverage beginning January 1, you should sign up by December 15, 2015.
2. Automatic enrollment isn’t as good as it sounds.
If you purchased an individual or family plan through the marketplace last year and you do nothing this year, you’ll probably be automatically re-enrolled in your current plan for 2015. Auto enrollment sounds handy, but it could lead to a number of unpleasant surprises: your monthly premium may change, your eligibility for subsidies may fall out of date, or you may even be automatically enrolled in a different plan if your insurer stops offering your existing coverage.
For all these reasons, you should be proactive during the open enrollment period. Contact your favorite Certified Insurance Agent (that should be me )on or soon after November 1 to learn about the options available to you for 2016. Update any personal or income information that’s changed during the year, then choose the plan you want.
3. Neglecting to update income information could be an expensive mistake.
As you probably know by now, the Affordable Care Act offers subsidies that may lower your monthly health insurance premiums. Most folks who applied for coverage through Covered California qualified for a subsidy. But for your financial assistance to work properly, it must be re-evaluated each year. If your income changes, your subsidy amount may rise or fall.
Be sure you’ve reported correct income information to Covered California. If you haven’t, you may not receive the financial aid for which you qualify. On the flip side, if you’ve claimed too much assistance, you may have to pay the IRS back at tax time. You don’t have to wait until open enrollment to report income changes; you’re supposed to update important information throughout the year. But open enrollment is a good time to double check your personal information and correct your Covered California files if necessary.
4. Tax penalties are going up.
In 2015, the tax penalty for going without insurance is $325 per adult and $162.50 per child or 2% of annual family income, whichever is greater, up to a maximum of $975 per household. For 2016, those numbers jump to $695 per adult and $347.50 per child or 2.5% of annual family income, whichever is greater, up to $2,085 per household. The only way to avoid this penalty is to sign up for a qualifying health insurance plan by January 31, 2016 — or prove you qualify for an exemption. If you don’t, you’ll pay the price when you file your taxes.
For more information on what qualifies as health coverage under Obamacare and whether you’re eligible for an exemption, please contact us (http://www.SFCheapInsurance.com )
5. You can get help finding the best health coverage and filling out your application.
There are many resources available to help you choose a health insurance plan and complete your application. If you want one-on-one assistance from a trained professional who can recommend a health insurance plan based on your individual circumstances, you can contact an insurance agent or broker. (We are always available to assist, please contact us!) Unlike federally funded assistants, brokers are legally permitted to suggest the right plan for you.
http:www.SFCheapInsurance.com
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