The federal government is extending the exchange sign-up deadline, due to concerns about tax season confusion and subsidy mistakes for some 800,000 Americans.
The Department of Health and Human Services miscalculated tax credits for 800,000 individuals enrolled in exchange plan, and is now contacting them to inform them and ask them to delay filing their taxes.
The errors were related to benchmark health plans that are used in the formula tax credits and tax liability. About 50,000 people already filed their taxes, but will be able to correct the issues, HHS said.
The extended enrollment, under a special enrollment period, will run from March 15 to April 30 for individuals who are currently not enrolled in federal marketplace plans for 2015, those who paid a fee in their tax returns for not having 2014 coverage, and those who "attest that they first became aware of or understood the implications" of the individual mandate penalty "in connection with preparing their 2014 taxes."
"We recognize that this is the first tax filing season where consumers may have to pay a fee or claim an exemption for not having health insurance coverage," said outgoing CMS Administrator Marilyn Tavenner. "Our priority is to make sure consumers understand the new requirement to enroll in health coverage and to provide those who were not aware or did not understand the requirement with an opportunity to enroll in affordable coverage this year."
The special enrollment period is only for the 37 states using the federal marketplace, although some state-based exchanges are also extending enrollment to ensure against tax discrepancies.
It's not clear how many people will be eligible for the special enrollment. Some insurers have had fears about long enrollment periods weakening the incentives of the individual mandate, but considering the tax problems, America's Health Insurance Plans is on board with the extension.