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Wednesday, Apr 15 2015

Full Issue

Filer Beware: Health Law Tax Issues Trip Up Many

Insurance subsidy paybacks and special reporting requirements are confusing many consumers as tax day dawns. Elsewhere, a tax on high-value health coverage could be more than anticipated.

The tax filing season has uncovered lingering wrinkles in the 2010 health-care law that have caused headaches for consumers who incorrectly estimated their income, didn鈥檛 use a government exchange to buy an insurance plan or changed coverage during the year. Marta Chapman saw her anticipated $850 federal refund wiped out because she received too much in advance tax credits in 2014 to pay her insurance premiums under the Affordable Care Act. That prompted her to drop her plan for this year. (Radnofsky, 4/14)

The special health insurance enrollment period set up for people surprised by their tax penalties hasn't appeared to increase either awareness or enrollment by much, new research shows. People who live in the 34 states that use HealthCare.gov and didn't know about the requirement to have health insurance can sign up through April 30 for 2015 coverage. (O'Donnell, 4/15)

How much is the so-called Cadillac tax anyway? The looming Obamacare tax on pricey health care benefits, at least at first glance, is 40 percent. But some experts say the true rate is much higher, more like 61 percent, because of some little-noticed quirks in how the tax works. (Faler, 4/14)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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