Believe it or not, it is almost that time of year already for open enrollment. This year, however, Obamacare enrollment could add new issues that have yet come to light. For the program itself, some of the challenges are the length and timing. The open enrollment season this year will be half as long as last year’s sign-up period. Additionally, the season (Nov 15 — Feb 15) overlaps with the holiday season.
But the larger implications are for those already enrolled. For starters, when you signed up last year the system set you up for automatic renewal. That fine print could turn out to be a bad thing because you may miss out on lower premium options and consequently be stuck with an outdated and possibly incorrect government subsidy.
Additionally, if you received tax credits to help pay your premium, you will have to file new forms with your 2014 tax return to prove you received the correct amount. A large majority (approximately 84%) of Obamacare enrollees fall into this category. The subsidies are tied to income, thus your tax filings will definitely be impacted in one way or another.
And for those who remained uninsured for this past year? Well, this is where you reap the well-published “gift” of Obamacare. For those of you in this category, you will receive a tax penalty (unless you can somehow secure an exemption).
So why all of these tax issues and penalties? Remember that, in short, the Supreme Court upheld the constitutionality of Obamacare only because the new healthcare law is . . . a TAX.
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