In a bid to help those without health insurance to avoid tax penalties, insurers in New York have come up with a “backup” plan of sorts.
The penalty for not securing health insurance in 2016 is $695 per person, or 2.5 percent of household income, whichever of the two is greater.
Select carriers have begun to offer the "Zero or Twenty Dollar Essential Plan" on the New York State of Health Marketplace for those who meet its income requirements.
According to report from Time Warner Cable News, the plan offers benefits similar to other plans, such as “free preventative care, no deductible and prescription drug coverage.” The difference is that enrollees only pay a premium anywhere between $0 and $20 per person monthly, based on the size of the household and total income.
By enrolling in this special plan by May 15th, policyholders can reduce their tax penalty to $290 on next year’s tax returns.
Notably, enrollment in this “Essential Plan” is open all year round, which means policyholders do not have to wait for the ACA open enrollment period on November.
