One more month to get 2015 health insurance or face a tax penalty

The window to sign up for healthcare under the Affordable Care Act for this year is quickly closing, and California's health insurance exchange Tuesday reminded consumers that most of those who miss the deadline run the risk of penalties when they file their 2015 federal tax return.

Open enrollment ends Feb. 15. Those who do not make the deadline are out of luck - except for those who qualify for a hardship exemption or have a so-called "qualifying life event," such as getting married or having a child.

Everyone else who fails to sign up for insurance by the closing date will be on the hook for a bigger tax penalty from the IRS.

Covered California executive director Peter Lee noted the penalties are increasing significantly for 2015 compared with 2014. For example, a family of four without insurance would be fined about $1,000 or up to 2 percent of its annual income – whichever is more.

"The tax penalties are part of making sure all Californians understand that healthcare and taxes increasingly are things they need to think about together," Lee said.

Fines will be pro-rated, and a consumer can be uninsured for up to three months out of a year before the penalties kick in. 

As of January 11, 217,000 people had signed up for private insurance for the first time through Covered California since this enrollment period began on Nov. 15, the agency said, adding that another 466,000 enrolled in Medi-Cal during that time.

Those who sign up by Jan. 15 can get coverage that begins on Feb. 1. Those who sign up between Jan. 16-Feb. 15 will get coverage starting March 1.

 Covered California is hoping to have half a million new enrollees by the end of this enrollment period. That would bring the overall total since the beginning of the first open enrollment in Oct. 2013 to 1.7 million, including the 1.2 million who are expected to renew.

Final renewal figures will not be available until after the enrollment period ends, according to Covered California.