No health insurance for 2015 or 2016? You may be facing a tax penalty

If you can afford health insurance but you choose to not enroll in coverage for 2016, you may be required to pay a fee when you file your 2016 federal income taxes. The fee is also called a penalty, fine, or the individual mandate.

A few facts about the individual mandate:

• The fee is calculated one of two ways. The fee for not having health insurance if you can afford it is $695 per person in your household who doesn’t have health insurance or 2.5 percent of your income – whichever is higher. HealthCare.gov has a guide to estimate the fee you’ll have to pay if you don’t have health insurance. 

• The fee for 2015 is lower than for 2016. For 2015, the fee for not having health insurance if affordable insurance is available to you is $325 per person or 2 percent of your annual household income – whichever is higher. The fee is calculated based on the number of months you, your spouse, or your tax dependents went without qualifying coverage, such as an employer-sponsored health plan, Medicare, Medicaid or coverage through Washington Healthplanfinder.
  
  In some cases, the fee may be higher than buying health insurance through Washington Healthplanfinder. You can look at plans and find out if you qualify for help at www.wahealthplanfinder.org. 

• For some people, exemptions from the fee are available. People with very low incomes and individuals who meet other specific conditions can receive an exemption from the requirement to have health insurance and will not have to pay the fee. Additional information about exemptions and a tool that helps you determine if you qualify for an exemption is available on HealthCare.gov. 

If you need health coverage and want to avoid the fee for 2016, the deadline to enroll in a plan is Jan. 31. If you don’t enroll by then, you could have to wait another year to get coverage and may have to pay the fee when you file your 2016 income taxes. If you want coverage that starts on Jan. 1, you need to enroll by Dec. 23.

More information about the individual mandate on the Internal Revenue Service's (IRS) website.

Health insurers must provide transparency tools to consumers on Jan. 1

Health insurers are required to provide transparency tools via their websites starting Jan. 1, 2016, to consumers who are enrolled in their plans. The tools provide information about treatment costs, quality of care and other patients’ experience with the medical providers. These tools have not been readily available to consumers before now. The requirement is in the Affordable Care Act and is being implemented in Washington state now.

Each insurer must provide written verification to the Washington state Office of the Insurance Commissioner by Feb. 1 of each year that the company is in compliance with this state law, which was enacted by the 2014 Legislature. The OIC provides a form for health insurers to fill out and send to us, called an attestation. We are required to post the form 60 days before it's due.

You can read more about the rules the OIC wrote to implement this requirement, which were recently adopted, or about the state law (RCW 48.43.007). The OIC also provided instructions and the attestation form for insurers to return to us by Feb. 1, 2016.

Tips for holiday travelers

Are you traveling for the upcoming holiday? Here are some travel tips to help keep you safe and informed.

Driving

• The Washington State Department of Transportation (WSDOT) app gives real-time traffic updates and alerts. 
• WSDOT also has an infographic that shows what you should carry in your car when you travel and information about winter driving.
• We have information for consumers about auto insurance and filing claims. 
• The National Association of Insurance Commissioners has an app called WreckCheck that walks you through the steps you need to do if you are in an auto accident and allows you to create an accident report from your phone. 

Traveling by plane

• Give yourself plenty of time to get to the airport and to get through security. Read CNN's story, Thanksgiving travel: Longer lines and tighter security.
• Get airport travel tips from the TSA.
• If you are traveling internationally, the U.S. State Department has country-specific information and alerts. 

Other travel tips

• Set weather alerts for up to five locations using FEMA's mobile app.
• If you are driving to Canada, check border wait times before you choose your border crossing. 
• Get information about travel insurance. 
• Get information about your rights to see an out-of-network health provider while traveling. 

Columbia United Providers will notify enrollees about withdrawal from Washington market

Columbia United Providers (CUP) this week informed the Office of the Insurance Commissioner that it is voluntarily withdrawing from the individual health insurance market.

The company, which is based in Vancouver, Wash., also said that it intends to sell its Medicaid business to Molina Healthcare. That proposal is subject to approval by the Insurance Commissioner.

Here are answers to some questions about CUP’s announcement:

Why did CUP voluntarily withdraw from Washington?

The company cited business reasons for the voluntary withdrawal.

How does CUP’s withdrawal affect the Washington health insurance market?

CUP offered individual plans in Clark County only. As of November 2015, CUP had fewer than 100 enrollees in the individual market. These plans were offered only through the Washington Health Benefit Exchange. The company also managed insurance coverage for about 55,000 enrollees in Medicaid plans in Clark County. The Washington Health Care Authority (HCA) oversees Medicaid in Washington.

HCA is aware of CUP’s withdrawal from the Washington market and its proposal to sell its Medicaid business to Molina Healthcare.

How does this affect those who enrolled in Exchange plans?

The Health Benefit Exchange is aware of CUP’s withdrawal and proposed sale. The Exchange is reaching out to any enrollees who selected CUP for 2016 to assist them in choosing another plan. CUP 2015 enrollees will be covered through the end of the year and can select alternate coverage for 2016. Any CUP enrollee who wants to change coverage for the remainder of 2015 may request a special enrollment.

How will current enrollees be notified CUP’s decision?

The company is responsible for notifying, by Nov. 19, 2015, all individuals who have purchased individual coverage through CUP, to be effective on or after Jan. 1, 2016, that their coverage is terminated. The company’s plans will no longer be listed on the Washington Healthplanfinder.

Even with CUP’s voluntary withdrawal, Washington remains a competitive market with a wide selection of choices. There are five companies that sell individual plans in Clark County. Overall in Washington, there are 14 insurers and more than 200 plans available for consumers for coverage in 2016.

Will existing claims be paid?

Washington state insurance law requires that all claims be paid and that company make plans for payment. At this time there is no concern about the company paying existing claims for enrollees in its Washington plans.

OIC has saved auto insurance consumers nearly $26 million since 2010

The Office of the Insurance Commissioner's rate decisions have saved auto insurance consumers nearly $26 million in premiums since 2010.

Personal auto insurers are required to file their proposed rates and rating plans with our office whenever there's a rate change. Our actuaries review the proposed rates, rating plans, and supporting documentation to be sure that the rates are not excessive, inadequate or discriminatory.

From 2010 through 2014, the rates we approved for the top 20 personal auto insurers in Washington saved consumers nearly $26 million in premiums.

• 2014: $6.2 million 
• 2013: $8.9 million 
• 2012: $5.6 million 
• 2011: $2.7 million 
• 2010: $2.7 million 

Read more about auto insurance in Washington state.