WASHINGTON: If you haven’t signed up for health insurance, you may soon be getting a not-too-subtle nudge from the taxman.
The IRS is sending personalized letters to millions of taxpayers who might be uninsured, reminding them they could be on the hook for hundreds of dollars in fines under the federal health care law if they don’t sign up soon through HealthCare.gov. It’s an unusual role for a revenue-collection agency.
Fines are one of the most unpopular parts of the 2010 health overhaul, and there’s a high likelihood they’ll get repealed by Republicans, even if other parts of the Affordable Care Act survive. The administration is counting on IRS reminders to help sign up as many people as possible before open enrollment ends Jan. 31. That’s soon after officials hand off President Barack Obama’s signature program to a Trump administration committed to “repeal and replace.”
Letters bearing the IRS logo will be sent to an estimated 7.5 million people who either claimed an exemption from the law’s requirement that most Americans carry health insurance, or who paid a penalty for being uninsured during the 2015 tax year. The coverage requirement was included in the law as a way to get healthy people into the insurance pool, helping to keep premiums in check.
The penalty for this year could be $2,085 or more, depending on family size and income, says a draft of the letter. A different version of the letter leaves a blank space for the IRS to give an individualized estimate of what the uninsured taxpayer might owe. The drafts were obtained by the Associated Press.
Although the administration has made no secret of the IRS role in open enrollment this year, officials have not responded to requests for copies of the letters.
The campaign will cost about $4 million, say congressional aides.
“People receiving these letters have already made up their minds about Obamacare when they applied for an exemption or paid a penalty,” said House Ways and Means Chairman Kevin Brady, R-Texas. “They don’t want stock letters. They want better health care choices and lower costs.”