Most people who got tax credits to buy insurance under the federal health law will be repaying part of them for the second year in a row, according to a leading tax preparer.
H&R Block Inc. executives said Tuesday that, to date, 60% of 2015 tax filers with the credit have found that they owe the government money because they had been credited too much. That is up from 52% last year, the first year in which filers had to reckon with reporting the credit and figuring out if their income projections had been accurate.
On average, tax filers were repaying almost $580 each for excessive credits, up from $530 for overpayments during the 2014 filing year.
If you bought health insurance last year through Obamacare, you may be pleasantly surprised at tax time to find out you have money coming to you.
But it’s just as likely the surprise will go the other way: You might owe Uncle Sam some money if the government subsidy you received for buying insurance through the Affordable Care Act marketplace was too large based on your income. And if you skipped buying health insurance entirely, you probably will face a penalty. On average, those penalties this year are running $383 among H&R Block customers. That’s an increase from $172 a year ago.
If this is confusing or unpleasant, don’t decide to ignore the matter.
Sen. Marco Rubio (R-Fla.) is opening a new front in his attacks on ObamaCare as he campaigns for president.
After trying to bring publicity to his efforts to limit the Affordable Care Act’s “risk corridors” program, Rubio and Sen. Orrin Hatch (R-Utah), the chairman of the Finance Committee and a campaign backer, wrote a letter on Tuesday arguing that the Obama administration is breaking the law with another “bailout” of insurance companies.
Their letter concerns ObamaCare’s “reinsurance” program, designed to protect insurers against high costs for sicker enrollees in the early years of the law. Under the program, the government collects money from insurers and then redistributes it to those with high-cost enrollees.
The Federal government wants to leave doctors and hospitals on the hook for medical bills unpaid by the failed ObamaCare co-ops.
A top official at the Centers for Medicare and Medicaid Services told Congress that the government, not medical providers, has the first right to any remaining co-op funds. This CMS policy ignores a 1993 U.S. Supreme Court decision that says the federal government is next to last in line for payment in insurance cases, and policyholders should come first.
Twelve of the 24 co-ops funded through the ACA have failed and are going through the liquidation process. At least 800,000 people have had to find other coverage after their co-op policies were cancelled.
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