What is Health Insurance Market Place ?

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Health Insurance Market Place

Health Insurance Marketplace – also referred to as the Health Insurance Exchange  is the place where people without health care insurance can find information regarding medical insurance options and also purchase health care insurance. Information can also be found regarding eligibility for aid with paying premiums and decreasing out-of-pocket expenses. Each year the Marketplace has an open registration period.

In addition to the Federally-facilitated Marketplace, HealthCare.gov, there are also state-based Marketplaces. Whether you use the Federally-facilitated Marketplace or a state-based Marketplace is contingent on the state in which you live. If you go to HealthCare.gov, you will be requested to offer your ZIP code.

If you purchased health care insurance through the Marketplace, you should receive a Form 1095-A, Health Insurance Marketplace Statement, at the start of the tax filing period. The data revealed on Type 1095-A helps you finish your federal individual income tax return. If Type 1095-A shows policy for you and everyone in your household for the entire year, check the full-year policy box in your tax return. Among other things, Form 1095-A accounts the total monthly medical insurance premiums paid into the insurance provider that you selected through the market. It lists the total amount of premium assistance you received in the shape of progress payments of the premium tax credit which were paid directly into your insurance company if any.

If you chose to have progress payments of the top tax-free directly to your insurance company, you have to file a federal income tax return, even if you are otherwise not required to document. You are required to reconcile — or compare — those payments into the premium tax charge you’ll compute for your tax return. Even if you did not choose to get progress payments, you have to file a federal income tax return to claim the premium tax credit. See below for additional information regarding the effect of failing to reconcile advance payments of the top tax credit.

If you bought coverage through the federally facilitated Marketplace and you set-up a HealthCare.gov account, you can find a copy of Form 1095-A, Health Insurance Marketplace Statement online from your accounts. Visit your Marketplace’s site to find out the steps that you need to follow to acquire a copy of your Form 1095-A online. You can use either the information out of your online account, if it is available, or the Form 1095-A that is mailed to you to complete your tax return.

The IRS reminds taxpayers that received advance payments of the tax credit that they should register their tax return time to make certain they can receive progress payments next year out of their Marketplace.

If progress payments of the premium tax charge were paid on behalf of someone on your loved ones, and you don’t file a tax return reconciling those payments, you will not qualify for advance payments of the premium tax-free or cost-sharing discounts to cover your Marketplace health insurance policy within the following year. In addition, we may contact you to pay back some or all of the advance payments of the tax credit.

Marketplaces will decide eligibility for advance tax obligations and cost-sharing discounts for the coverage year in the fall before the new policy year begins. You will substantially improve your chances of preventing a difference in receiving this help if you electronically file your tax return using Type 8962 by the due date of your return.

In case you have a question about the information displayed on your Form 1095-A, or about getting Type 1095-A, or about a letter you received, contact with your Marketplace as shown in the table below or visit HealthCare.gov/taxes.

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