About 800,000 California households have received federal subsidies under Obamacare, with an estimated average of $5,200 in assistance, Covered California reports.
That comes to about $436 per month per household, the state Obamacare operation said.
“The assistance provided through the Affordable Care Act helped bring health coverage within reach for more than a million people, and it changed lives across the state,” said Covered California chief Peter Lee.
Covered California sells private health insurance, with the vast majority of those using its services receiving subsidies.
The health insurance exchange made the announcement as it mailed out “Health Insurance Marketplace Statements” aka IRS Form 1095-A. The form will show the amount of “Advanced Premium Tax Credit” each household received on a month-by-month basis in 2014.
“Similar to other tax documents, like a W-2 or 1099, the 1095-A will be used by consumers when they file their federal tax returns this year to ensure the subsidy they received is appropriate,” Covered California said.
Changes in income would require adjustments to be reflected at tax time. Almost all consumers receiving subsidies get their credits in advance, based on projected income.
The current tax-filing season is the first under the Affordable Care Act’s subsidies for lower-income families. Covered California officials admitted the process likely will have some issues:
“Our job this year is to introduce the 1095-A and make it as clear as we can,” Lee said. “In three or four years, we hope consumers will be as familiar with the form 1095-A as they are with 1040s and W-2s.”
Most uninsured taxpayers will have to figure in penalties due via the Internal Revenue Service. Those penalties for being uninsured increase this year and next. (In government-speak, that’s the “individual mandate penalty” or the “shared responsibility” fee.)
Open enrollment for 2015 health insurance continues through Feb. 15.
View a sample of the Health Insurance Marketplace Statement
View an infographic about the Health Insurance Marketplace Statement
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