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Employer Deadlines for Insurance Under the Affordable Care Act Extended by IRS

January 31st, 2016

The deadline for employers to electronically file the so-called 1094 forms for 2015 which provide coverage information to the IRS was extended to June 30, 2016 from March 31, while non-electronic form reporting was delayed to May 31, 2016 from Feb. 29.  According to IRS.gov:

“The due dates for the 2015 information reporting requirements under I.R.C. §§ 6055 and 6056, have been extended.

*The due date for furnishing the 2015 Form 1095-B, Health Coverage, was changed from January 31, 2016, to March 31, 2016; and

*The due date for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, and the 2015 Form 1095-B, Health Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.

*The due date for furnishing the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from January 31, 2016, to March 31, 2016; and

*The due date for filing with the Service the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, was changed from February 29, 2016, to May 31, 2016. If filing electronically, the due date was changed from March 31, 2016, to June 30, 2016.

As a result of these extensions, individuals might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns. For further guidance, please see Notice 2016-04.

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How to Avoid the January 31st 2016 Deadline to Buy Health Insurance and Avoid Penalties

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How to Avoid the January 31st 2016 Deadline to Buy Health Insurance and Avoid Penalties

January 31st, 2016
Peoria based Samaritan is one alternative to health insurance to avoid Obamacare penalties

Peoria based Samaritan is one alternative to health insurance to avoid Obamacare penalties

Buy insurance by Sunday, January 31, 2016 which is the last day to buy health insurance to avoid a $695 per adult and $347.50 per child penalty, or 2.5% of annual household income whichever is higher.  The only way to avoid the penalty is to buy insurance, qualify for a life event authorized by the U.S. department of Health and Human Services, or become a member of a faith based healthcare cost sharing ministry (Health care sharing satisfies the Federal health care law’s (Affordable Care Act) requirement that individuals purchase insurance or pay a penalty-tax (see 26 United States Code Section 5000A, (d) (2) (B)).).

Affordable Care Act dates for 2016 individual enrollment

  • November 1, 2015: Open Enrollment started
  • December 17, 2015: Last day to enroll in or change plans for new coverage to start January 1, 2016
  • January 1, 2016: 2016 coverage started for those who enrolled or changed plans by December 17.
  • January 15, 2016: Last day to enroll in or change plans for new coverage to start February 1, 2016
  • January 31, 2016: 2016 Open Enrollment ends. Enrollments or changes between January 16 and January 31 take effect March 1, 2016.

Additionally, employers with over 50 employees must offer affordable insurance.  Recently the IRS announced an extension for 2016 for employers to file the appropriate forms.  Those 65 and over may be also be insured by Medicare.

Source: Healthare.gov

Exemptions from the Affordable Care Act to Avoid a Penalty

  1. If you qualify for post January 31 2016 Special Enrollment Period for people who qualify based on certain Live Events.
  2. If you join a faith based healthcare cost sharing ministry that shares medical expenses instead of buying traditional insurance.  Ministry groups that obtained an exception to the Affordable Care Act law enable members some shelter not only from high medical costs but from penalties. Only ministries in continuous operation since at least Dec. 31, 1999 are exempt from the ACA. The carve-out was intended to satisfy what at the time were relatively small religious groups that argued that their non participation was a matter of religious freedom.  Check reviews and coverage details because these groups are not insurance and may have some risks.  Examples of ministries include:
    • Detroit MI based Christ Medicus http://christmedicus.org/about.php
    • Peoria, Il based Samaritan ministries http://samaritanministries.org/contact-us/

Sources:

Healthare.gov

The Wall Street Journal

Calculating Your Obamacare Penalty

In 2016, a family of four with $75,000 in household income with two adults and two children at home may ow a penalty of over $2,000 if they choose not to secure health insurance.

Penalty Calculator

Source:

Health insurance.org

 

 

 

 

 

 

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