OLYMPIA, Wash. -- The Washington Health Benefit Exchange is notifying residents who enrolled in a health plan throughWashington Healthplanfinder that failure to file a federal tax return with the Internal Revenue Service will impact their ability to receive tax credits, preventing them from getting assistance to lower the cost of health insurance premiums.
Beginning this week, customers who received advanced health insurance premium tax credits last year but did not file a federal tax return will be sent a letter from the Exchange notifying them that they are ineligible to continue collecting health insurance premium tax credits. These customers must now pay the full price of any upcoming health insurance premium payments until they file and reconcile their 2014 federal taxes.
“Because this is the first year that a tax return must be filed in order to keep receiving tax credits, customers are just now seeing the consequences for not filing,” said Pam MacEwan, CEO of the Washington Health Benefit Exchange. “Residents who have received tax credits in the past should reconcile those along with their tax filings in order to continue receiving lower premium payments.”
Customers who receive this notification may find additional information for regaining their tax credit eligibility here. Those individuals who go through the process of filing and reconciling their 2014 federal taxes may return to Washington Healthplanfinderand report this change to be screened for a Special Enrollment Period and redetermination of eligibility for advanced premium tax credits.
Additionally, all customers who enrolled in a Qualified Health Plan through Washington Healthplanfinder for coverage in 2015 have been mailed an important tax return document called 1095-A: A Health Insurance Marketplace Statement. The 1095-A is used to complete IRS Form 8962 that determines the final amount of entitled tax credit. This form must be filed with federal income tax returns in order for individuals and families to receive future tax credits that can lower the cost of premiums.
Last year, nearly $365 million in advanced health insurance premium tax credits was provided to approximately 80 percent of Washingtonians who enrolled in a Qualified Health Plan through Washington Healthplanfinder. Customers who qualified for tax credits received an average of $265 per month to help lower the cost of their health insurance coverage.
“Many of our customers rely on these tax credits to help cover their health insurance premium costs,” said Michael Marchand, Director of Communications and Outreach for the Washington Health Benefit Exchange. “It is crucial that individuals and families correctly file their federal taxes so that they can ensure they are getting coverage that meets their needs and budget for themselves and their family.”
Online assistance is available to residents completing a 1095-A statement, including answers to Frequently Asked Questions and information on free tax filing services. In-person help and other resources provided by both the Exchange and the IRS can be foundhere.
Opportunities to sign up for a 2016 health plan are still available and offered throughout the year to customers who meet specific eligibility requirements. Residents who experience a life qualifying event, such as a change in marital status, loss of health coverage, or a move to a new area, are entitled to a 60-day Special Enrollment Period to sign up for a health plan or change a current plan. Additional information on Special Enrollment Periods can be found here.
Reminders: Enrollment in Washington Healthplanfinder Business and Washington Apple Health (Medicaid) is year-round. Apple Health customers will receive a notice 60 days before the month they enrolled in or renewed their coverage last year.
About Washington Healthplanfinder
Washington Healthplanfinder is an online marketplace for individuals, families and small businesses in Washington to compare and enroll in health insurance coverage and gain access to tax credits, reduced cost sharing and public programs such as Medicaid. The most recent open enrollment period for Washington Healthplanfinder began on Nov. 1, 2015 and ended on Jan. 31, 2016.
About the Washington Health Benefit Exchange
The Washington Health Benefit Exchange is a public-private partnership established in accordance with the Patient Protection and Affordable Care Act of 2010 (ACA) to implement a new health insurance marketplace for individuals and small businesses. The Exchange is separate from the state and governed by an independent 11-member board. For more information, visitwww.wahbexchange.org.
