3 Things to remember before you sign up for health insurance
Posted on October 28th, 2015 in Uncategorized

The 2014 was the first year in which health insurance was considered to calculate taxes. While the penalties for not having insurance were small, 1% of your household income, the penalty rates will increase over the next few years resulting in a possible 2.5% penalty in 2016.

While some people are covered though their job, others have to look to the healthcare exchange to find coverage. For those who look for healthcare on the exchange, certain qualified insurance plans can be partially subsided through the government in the form of advanced premium credit.

The open enrolment period for 2016 is scheduled to start on November 1st, 2015.  We thought this might be a good opportunity to review a few facts for those looking at purchasing health care coverage through the exchange.

  • Be careful estimating your expected income for 2016. While under-estimating your income could lead to a higher premium credit on your plan during the year to reduce your out of pocket premium expenses monthly, you could get a bill for the difference between credits you received vs. the amount you actually qualified for at given income amount at the end of the year.
  • You should file any unfiled tax returns and resolved any outstanding balances. Remember the IRS is responsible for responsible for administering the ACA and issuing tax credits. They will need the information on the 2014 returns in order to determine if you qualify for a credit. Further if you have unfiled tax returns of back taxes owed the IRS will be able to take away any advanced payments you may qualify for.
  • Make sure to have all your financial and person information together before starting the online process. If you decided to call them, be prepared to wait. The average hold time for a call is approximately 40 minutes and there is no guaranty that you will get a correct answer.


To get an estimate of your health insurance cost, please feel free to use the calculator at the website address below.


They do no ask you for any personal identifying information.

About the Author – Phillip Zagotti, CPA is the President of Zagotti and Burdette CPA, LLC. He can be reached at or (832) 800-3347. 

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