IRS sends out penalty reminder before ACA health plan signup deadline

The Internal Revenue Service is sending letters to millions of Americans, reminding them they could face fines under the ACA for not signing up for health insurance, reports HealthDay.  

Under the health law, individuals face a penalty if they don't have health insurance that counts as qualifying health coverage. The 7.5 million IRS letters will go to people who either claimed an exemption from the ACA or paid a penalty for being uninsured during the 2015 tax year, according to the report.

The penalty in 2016 and 2017 for not having health coverage is $695 for each person on a tax return who isn't covered ($347.50 per child), or 2.5 percent of the tax filer's household income, whichever is more, according to HealthCare.gov, the federal health insurance exchange website.

Federal officials hope the IRS letters will lead as many people as possible to meet the ACA's Jan. 31 enrollment deadline, HealthDay reports.

 

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