Latino nonprofit offers aid with health and taxes days

When nonprofit executive Will Gonzalez heard about the special enrollment period allowing people to buy health insurance when they file their income tax returns, he knew what he had to do.

"We're planning for more health and taxes days," said Gonzalez, executive director of Ceiba, a Latino community group that offers free tax preparation.

On Feb. 20, the Department of Health and Human Services announced that from March 15 to April 30, uninsured people can buy a plan on the Affordable Care Act marketplace - www.healthcare.gov - when they file their tax returns.

The extra time gives people one last chance to avoid a penalty next year.

Of course, buying coverage during the special period will not absolve consumers from paying the fine for 2014.

The same day the agency announced the special enrollment period, the Centers for Medicare and Medicaid Services said 20 percent of the 1095-A forms sent out - roughly 800,000 - had an error, and it urged recipients to hold off filing until corrected forms could be sent out.

The forms showed the incorrect figures used to calculate subsidies. The calculations are based on the cost of a specific benchmark plan, which is different in each insurance market around the country.

Anyone who gets a 1095-A - the Health Insurance Marketplace Statement - must file a tax return.

Last week, the agency reported that about 50,000 tax filers had already submitted their taxes using the incorrect 1095-A forms. Those taxpayers do not need to file an amended form, CMS said.

But, the agency noted, some people may want to file an amended form with updated information.

"A taxpayer is likely to benefit from amending if the 2015 monthly premium for his or her [benchmark plan] is less than the 2014 premium," the agency advised.

In any case, Ceiba plans "to make a big hoopla" about the special period, Gonzalez said. Last year, the group tried enrolling people in insurance along with doing their taxes. But it didn't go well.

"After looking at some of the stuff last year, we said, 'No, no, no,' " Gonzalez said. "We are going to focus on our strengths and collaborate with people who can dedicate their time" to health insurance.

This year, Ceiba teamed with Enroll America, a nonprofit whose goal is to get more Americans insured. The two groups started holding health and taxes events in late January.

So far this tax season, Ceiba has prepared taxes for about 300 people and identified 60 folks who then got insurance. Gonzalez estimates a quarter of the group's tax clients paid the $95 fine or 1 percent of income - whichever is greater - for being uninsured last year.

"We're seeing people who should have been covered by Medicaid if expansion had taken place [last year] and will be covered now" because Pennsylvania expanded Medicaid starting Jan. 1, he said.

A few of Ceiba's clients have had to repay a portion of their subsidies because they underestimated their 2014 income. But that's nothing compared to the 52 percent of Americans who are repaying money or seeing their returns reduced by an average of $530 because they got too much subsidy, according to H&R Block.

Block also reported that the often-ignored "whichever-is-greater" clause in the penalty is costing taxpayers an average of $172, far more than the $95 flat fee. In 2015, the fine jumps to $325 for an adult and $162.50 for each child, or 2 percent of household income.

Consumers have 15 days after the April 15 tax deadline to finish their insurance signups. Once the April 30 deadline passes, consumers can buy insurance from the marketplace only if they have a life-changing event, such as marriage, a baby, or loss of job-based coverage. Private plans, rather than the subsidized ACA ones, are still available but will likely cost more.

Medicaid, which now covers legal residents earning up to 138 percent of the federal poverty level ($16,243 for a household of one, $33,465 for four), also has year-round sign-ups (Pa.: www.healthchoicespa.com; N.J.: www.njfamilycare.org).

Ceiba and Enroll America have scheduled three health and taxes days - March 19 and 26 and April 2 - at the Council of Spanish Speaking Organizations, 141 E. Hunting Park Ave. People should bring picture ID, Social Security numbers, and income statements.

For people who need insurance, Gonzalez said, "We can pass you along to Enroll America people who are in the same room, and get you signed up."

This article was written in partnership with Kaiser Health News, an editorially independent program of the Kaiser Family Foundation.