January 31, 2016

Get Insured Before The Open Enrollment Deadline Ends! Toll Free ACA Number is 1-800-318-2596

The 2106 deadline is January 31st 2016 with the start of open enrollment on November 1, 2015. You may have missed the 2014 deadline to avoid the $95 penalty for not being insured. The Department of Health and Human Services is pushing hard to make sure people are insured.

Obamacare ApplicationYoung people are being encouraged to sign up for healtcare, especially in the light of statistics showing that most of the people who sign up for insurance are those who would use it and need it. On the contrary, the "young invincibles" are less likely to buy because they don't have the same health issues and often choose to spend their money on stuff they would actually like to buy. Certainly, there would be a question about whether the general economy is going to contract if people are spending a few hundred dollars less on things they enjoy. Restaurants, retailers, and service-based companies may notice a customer and sales dropoff if young people with money are compelled to sink it into insurance they are unlikely to use. When you consider that the cost of insurance could equal a car payment, several fancy meals at restaurants, or an overpriced cup of coffee every day, then someone is going to be missing out on income somewhere. At the other end of the spectrum, compelling older people to buy insurance could also drive up costs, even when subsidies are considered. All this is of course academic at this point.

Have You Signed Up?

many people who were anxious to sign up on October 1, 2013 found that they had to wait several weeks for all the glitches to come out, and there are reports that the back end (the rest of the iceberg) for payment fulfillment is a long way from being functional. Therefore, if you sign up you need to be sure that the insurer actually got all the information you took so much time to enter. People who thought that they'd been insured before the sliding December deadline discovered that their insurance companies had no idea who they were. Whoops.

Fines for Non-Compliance

As stated, there is a $95 fine for non-complaince but that is a minimum fine which can be adjusted upward depending on your income level. For 2014 it is $95 or $285 for your family, but in 2015 it goes up to 2% of your income, or $325 per adult, and in 2016 it goes up to 2.5% of your income. Of course, some of you may end up doing the math and note that the penalty is still less what you'd pay for insurance.

As an example, many Bronze and Siver plans cost upwards of $200 per month or $2400 per year, so you would have to be making $240,000 for the 1% penalty to cost more than the insurance, and at that level your employer will probably have you covered in a Cadillac plan, which does not get penalized for a few years.