FOR IMMEDIATE RELEASE January 16, 2015

Contact: HHS Press Office 202-690-6343

Readout on a call with Treasury Secretary Jacob J. Lew, Health and Human Services Secretary Sylvia Burwell, and Tax Volunteers

Today, Treasury Secretary Jacob J. Lew and Health and Human Services Secretary Sylvia M. Burwell spoke by phone with over one hundred volunteer tax preparers from across the country, who provide free tax filing services to low-income Americans.  Their remarks focused on the Affordable Care Act and highlighted the administration’s efforts to establish direct channels of communication with stakeholders nationwide who are working to help the public understand how healthcare and their taxes interact.

Treasury Secretary Lew opened the call by thanking the volunteers for their dedicated efforts to provide vital services to their communities.  He emphasized that the Affordable Care Act is making health coverage more affordable and is providing millions of Americans with access to quality care.  He noted that the vast majority of tax filers will only need to check a box to indicate that they had health coverage, while a smaller number of people will need to take additional steps when filing their taxes this year.  Specifically, he outlined that there are a few common scenarios that will apply; those who purchased coverage through the Marketplace will need to ensure they received the correct amount of financial assistance, while others who did not have coverage will need to claim an exemption.  In addition, a small fraction of taxpayers will pay a fee for choosing not to purchase coverage they could afford.  Secretary Lew explained that, just like taxpayers reconcile their taxes withheld with their actual tax liability and get refunds, or make additional payments when they file, starting this year, individuals getting financial assistance for Marketplace coverage will follow the same process.

HHS Secretary Burwell noted that individuals who received a tax credit to lower the cost of their coverage purchased through the Marketplace will need to provide some basic information about their health insurance when they file their income taxes.  She explained that the Marketplace has already started mailing consumers the information they need to file their returns, with the goal of providing 1095-A forms to all Marketplace consumers by the beginning of February, and noted that consumers can download the information from their online Marketplace accounts.  Secretary Burwell also described the administration’s outreach efforts to people who did not have health care coverage last year.  She emphasized the importance of educating people about the availability of exemptions and noted that the administration is focused on making the process of applying for and receiving one as simple as possible. 

Finally, Secretary Burwell described the administration’s awareness campaign more broadly, a multi-pronged initiative that includes an effort to provide Marketplace consumers with personalized tax information through email, phone and text message outreach, as well as the effort to educate the public through news media briefings, social media outreach and by working with grassroots partners who provide on-the-ground assistance and support to tax filers.

Secretary Lew and Secretary Burwell closed the call by noting that they plan to continue to engage with volunteers and other stakeholders throughout tax filing season, in order to ensure that Americans everywhere have the information and assistance that they need.

After these remarks, Senior Administration Officials addressed key questions that they expect to receive about the Affordable Care Act and tax filing.  These included: (i) how to determine whether taxpayers had appropriate health coverage for 2014; (ii) how to handle issues regarding the tax forms for those who received Marketplace coverage; and (iii) how to handle issues surrounding the fee owed by individual who choose not to purchase affordable coverage.

More information on Health Coverage and Federal Income Taxes is available here:  http://www.hhs.gov/healthcare/facts/factsheets/2015/01/health-coverage-federal-income-taxes.html.

Consumers can also visit HealthCare.gov/taxes for additional resources.

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Last revised: January 16, 2015