Need Health Insurance? Tips to Avoid the Federal Penalty
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Need Health Insurance? Tips to Avoid the Federal Penalty


WASHINGTON, D.C. – February 13, 2014 – (RealEstateRama) — Still need health insurance to meet the individual mandate requirements of the Affordable Care Act? You should be aware of other vital deadlines set up by health insurance carriers. There are many key dates that make a difference to when your coverage starts, when you are eligible and other tax implications since enrollment for health insurance can be complicated.

You should complete your enrollment by February 15 if you want your coverage to start as soon as possible, which is March 1st. Health insurance carriers require consumers to submit their enrollment before the 15th of every month if they want coverage to begin the following month.

If you wait until after February 16 to enroll, then your coverage will start on April 1. This also means that you could be subject to a tax penalty if you had been uninsured since January 1 or for three consecutive months, she said. To avoid the tax penalty, you must file an exemption with your taxes.

You must enroll by March 15 if you want your coverage to begin on April 1. However, if you wait to enroll in coverage between March 16 and March 31, your coverage will not start any earlier than May 1.

Another big wave of consumers enrolling at the last minute is anticipated again, so beat the rush and enroll before March 31.

Under the Affordable Care Act, there are several potential consequences for waiting until after March 31 to enroll.

If you miss the deadline, you could face paying the tax penalty if you earn enough money to file a federal tax return for 2014 because you were uninsured for more than three consecutive months. The tax penalty is $95 for an adult or 1% of your annual income, whichever is greater. The penalty, referred to by the government as the “individual shared responsibility payment,” will be applied when you complete your federal tax return for the 2014 tax year.

The next open enrollment period is in late 2014, so don’t wait until you have an illness or an injury.

If you wait past March 31 to get your coverage this year, you may be out of luck – unless you become eligible for employer-sponsored coverage mid-year.

For all of your insurance needs, visit or call 888-774-9894.


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