Q. I understand that I won’t have to pay a penalty for not having insurance because I signed up for coverage before the end of open enrollment. But what about my kids? Their CHIP coverage didn鈥檛 start until April.听
A. As long you signed them up before the end of the open enrollment period鈥擬arch 31 in most cases, although it was extended for some people into April鈥攜ou shouldn鈥檛 owe a penalty for your kids. The Department of Health and Human Services made that clear in .听
In the CHIP program, coverage doesn鈥檛 necessarily become effective immediately when someone applies. The problem that needed to be addressed was that people who applied for and were found eligible for Medicaid or CHIP during open enrollment this year might be uninsured for three months or more if their coverage didn鈥檛 start until April 1 or later. Under the health law, a coverage gap of that length could open them up to a penalty for not having insurance.
Applicants听for private coverage on the health marketplaces had faced the same timing problem: If they applied for a plan after Feb. 15, their coverage wouldn鈥檛 become effective until at least April 1, potentially leaving 听them with a coverage gap longer than the 鈥渓ess than three months鈥 allowed under the law.听
Last October, that anyone who applied for coverage through the health insurance marketplace during the open enrollment period wouldn鈥檛 be subject to the penalty for not having insurance. 听But the guidance didn鈥檛 spell out whether the same rules applied to people who signed up for Medicaid or CHIP during open enrollment. This new information makes it clear that it does.
鈥淧eople may not have realized that they would face a penalty,鈥 says Brian Haile, senior vice president at Jackson Hewitt Tax Service. 鈥淏y being proactive, HHS avoided compounding people鈥檚 frustration.鈥听
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