Posted on 01/14/2017 11:08:42 AM PST by bethtopaz
FILE - In this Aug. 21, 2014 file photo, tax form 8962 is seen in Washington. If you haven’t signed up for health insurance this year, you may be getting a nudge from the taxman. The IRS is sending personalized letters to millions of uninsured taxpayers that they’re potentially on the hook for hundreds of dollars in fines. (AP Photo/Carolyn Kaster, File)
WASHINGTON (AP) — If you haven't signed up for health insurance, you may soon be getting a not-too-subtle nudge from the taxman.
The IRS is sending personalized letters to millions of taxpayers who might be uninsured, reminding them that they could be on the hook for hundreds of dollars in fines under the federal health care law if they don't sign up soon through HealthCare.gov. It's an unusual role for a revenue-collection agency.
Fines are one of the most unpopular parts of the 2010 health overhaul, and there's a high likelihood they'll get repealed by Republicans, even if other parts of "Obamacare" survive. The administration is counting on IRS reminders to help sign up as many people as possible before open enrollment ends Jan. 31. That's soon after officials hand off President Barack Obama's signature program to a Trump administration committed to "repeal and replace."
Letters bearing the IRS logo will be sent to an estimated 7.5 million people who either claimed an exemption from the law's requirement that most Americans carry health insurance, or who paid a penalty for being uninsured during the 2015 tax year. The coverage requirement was included in the law as a way to get healthy people into the insurance pool, helping to keep premiums in check.
The penalty for this year could be $2,085 or more, depending on family size and income, says one draft version of the IRS letter. Another draft takes a somewhat different approach, leaving a blank space for the IRS to provide an individualized estimate of what the particular uninsured taxpayer might owe.
The drafts were obtained by The Associated Press. Although the administration has made no secret of the IRS role in open enrollment this year, officials have not responded to requests for copies of the actual letters.
Republicans say the whole thing is a waste of money. The campaign will cost about $4 million, say congressional aides.
"People receiving these letters have already made up their minds about Obamacare when they applied for an exemption or paid a penalty," said House Ways and Means Chairman Kevin Brady, R-Texas. "They don't want stock letters. They want better health care choices and lower costs."
Supporters of the health care law say research has shown that many people who remain uninsured are still unaware that they can go to HealthCare.gov and qualify for government subsidies to help pay their premiums. Those subsidies were designed as tax credits, bringing the IRS into the picture. The IRS letters make the pitch:
"Most people who enroll in a plan through HealthCare.gov can find plans for $75 a month or less after financial help," the letters say. "At HealthCare.gov, you can compare plans to find one that meets your needs and budget."
While such low-cost plans are available, many people actually pay more, and the $75 figure doesn't take into account deductibles and copayments. The average monthly premium last year for HealthCare.gov customers was $106, after financial help, according to the government. The administration has not released a comparable premium estimate for this year. Insurers raised their sticker prices significantly, but the law's subsidies should cushion the impact for most HealthCare.gov customers.
About 800,000 letters went out after Thanksgiving, and an additional 6.7 million are going out now, according to congressional aides.
Last year about 6.5 million people paid fines for being uninsured, averaging $470, according to recent IRS data. The amount is generally deducted from a taxpayer's anticipated refund. The fines started small in 2014, but are now fully phased in, starting at about $700.
The administration has a goal of signing up 13.8 million people for coverage this year and is looking for a strong finish to open enrollment season. Although the Affordable Care Act has reduced the nation's uninsured rate to a historic low, it remains politically divisive.
Remember, because the IRS penalizes you, John Roberts says Obamacare is merely a tax, and Fed.gov can force you to buy their insurance.
TriCare Prime for me and TriCare for Life for my wife exempts us so it doesn't matter if they owe me a bit come tax time - but I am trying to adjust my deductions to come as close to even as I can....
Put off filing taxes until we get clarity on the fate of ObamaScare.
I sure hope Roberts decides to step down in the next few months in order to spend more time with his family.
The IRS cannot compel you to pay the penalty except for confiscating your refund. If you always pay at the end of the year then you get away scott-free.
“A young person received a Letter?”
How nostalgic.
John Roberts, may he always be remembered for giving us Obamacare... anytime he shows his face in public, jeer him down like the pos he is...
The “$75 a month” health care they promises doesn’t cover much, it’s like a $6200 deductible.
So, the government is forcing you to buy healthcare that is useless to most people - and then they brag about “more people insured.”
Yes Tricare for life and also signing up for Medicare when eligible also ‘relieves’ us older folks of that notice. Still I can’t wait until ObamaNOcare is abolished and that illegal tax notice is gone.
No letter, yet.
I did preliminarily begin signing up on Healthcare.gov several years ago just to jack with them. The chat session I had with an Obamacare goon was... interesting. I ended the conversation when they wouldn’t insure my dog.
Ever since then, I’ve been receiving similar veiled threat emails on a regular basis on my need to buy their “insurance” of face a stiff penalty. I finally unsubscribed from their mailing list, thinking that I wouldn’t need to be threatened anymore in a few months. Even the unsubscribe process was threatening: “Confirm that you want to unsubscribed to notifications about laws which pertain to you?” Unreal.
Because the individual and business mandates were deemed to be a "tax," Congress can overturn them with simple majorities in both houses instead of dealing with a Democratic filibuster in the Senate.
Last year of this non-sense.
If Trump can’t get rid of the mandate within a month, he needs to suspend all IRS collections and enforcement of the penalty via EO.
I hope Trump gives congress an ultimatum if there is any delay. I want to see the Dems and Paul Krugman squirm and complain about the national debt.
I got one.
I refuse to bow to tyranny.
There is no delegated power for the federal to “tax” not complying with a federal regulation (never mind one it has no delegated power to enact in the first place). That is properly called a “fine” ... AND IT NEEDS DUE PROCESSES TO IMPOSE!
‘...nullify all tax penalties for 2016” then release his tax returns.
So if Trump repeals this, this is technically null and void right???? Will Trump have people that were taxed with this erroneous and illegal fee be re-imbursed for the past couple of years that we had to pay this FINE?
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