Being married to an accountant, I know that we’re a few short weeks away from “crunch time” for filing a tax return. If you, or someone you know, are in need of some assistance in filing their taxes, help is available.
AARP has a volunteer-based program that is free of charge to low and moderate income taxpayers, with special attention to those aged 60 and older. AARP membership is not required. Nearby assistance can be found at the Wheeling Township Hall, 1616 N. Arlington Heights Road, Arlington Heights, and at Cook Memorial Library, 701 N. Aspen Drive, Vernon Hills. More information can be found at www.aarp.org/findtaxhelp or at 888-227-7669.
Another topic that many people can use advice for these days is medical insurance. Due to all of the changes in the insurance industry because of the Affordable Care Act, it has become a real challenge to find a quality, affordable health insurance plan for themselves and their families. If someone does not currently have health insurance, they will be forced to pay a tax penalty on this year’s tax return.
Recently, I spoke with David Dlatt, a licensed, independent insurance agent in Buffalo Grove. He was kind enough to answer some commonly asked questions about how and when you can purchase private health insurance to meet your financial needs.
“If you receive your health insurance from your employer, as most Americans do, the out-of-pocket cost continues to rise and the overall cost of health coverage is spiraling out of control,” Dlatt said, “If the health insurance provided by your employer is becoming too expensive for your family’s budget, do not panic. There are other plan options available. Even if you do not have any coverage at all, plan choices are available.”
What is open enrollment?
“It is the time of the year when individuals can purchase private health insurance from the major insurance companies such as: Aetna, Blue Cross Blue Shield, United Healthcare and others. The next open enrollment will not take place until fall 2016. The exact dates of the open enrollment period are subject to change, but are presently set for October 1 to December 15 of this year. Plans purchased during this period would begin providing coverage as early as January 1, 2017.”
What if someone experiences a major life change and needs private insurance now. Are there exceptions to open enrollment?
“Yes! Under the ACA, you can purchase private health insurance outside of open enrollment through a special enrollment period, which opens for 60 days following specific qualifying life events such as: you or a family member losing your job, having a baby, getting married, adopting a child, gaining U.S. citizenship, moving to a new state, getting divorced or being released from incarceration.”
If a person doesn’t meet the special enrollment period exceptions and still needs coverage or wants to reduce his or her current health insurance costs, are there other options?
“Yes, there are certain private insurers that offer short term plans which will bridge the gap until the next open enrollment period…however, these plans are not without their drawbacks. They require underwriting, do not cover pre-existing conditions, and require you to meet specific wellness requirements to qualify. Short term plans are in many ways like a pre-ACA health insurance plan. Because of this, they do not meet the ACA’s requirements for minimum essential coverage, which means that you would be subject to the ACA’s 2.5 percent income tax penalty for the time period where your plan is not providing the minimum essential coverage required by law. Another industry secret is to purchase a fixed indemnity health insurance plan – they pay a set amount for the medical services you need, leaving you to pay the balance…pre-existing conditions are not covered for at least the first 12 months and like short term insurance, fixed indemnity plans do not meet the ACA’s minimum essential coverage requirements, which means you would also be subject to the 2.5 (percent) income tax penalty. If you’re considering whether to obtain these kinds of plans, it is critical to do the math…industry experts like myself are here to advise you in making this choice.”
For more information about health insurance, David Dlatt can be contacted at 312-317-8407 or online at www.weinsurepeople.com.
That’s all for now; please keep in touch and send neighborhood news to Aileen Simons at Thewritetouch1@gmail.com.
Aileen Simons is a freelance columnist for Pioneer Press
