Dive Brief:
- The IRS announced this week that an estimated 7.5 million Americans paid a penalty for going without health insurance in 2014—the first year the ACA implemented the individual mandate requiring coverage. The average penalty paid was $200.
- IRS Commissioner John Koskinen said the agency was releasing preliminary numbers upon request from members of Congress. The IRS has so far processed about 135 million of 150 million tax returns expected for 2014.
- The IRS also reported this week on utilization of ACA tax subsidies for qualified individuals purchasing health plans through state or federal online exchanges.
Dive Insight:
The IRS reports that the vast majority of Americans—81%—satisfied the individual mandate last year. It adds that another 12 million were exempt in 2014, including those with very low incomes and Native Americans.
Many other cases remain in limbo. About 300,000 people should have claimed an exemption but did not, the IRS says. Those who paid the penalty despite being exempt are being notified that they can file an amended tax return. Another 5 million taxpayers failed to indicate their status or pay a penalty, and are being analyzed.
In total, the agency says it has collected $1.5 billion from the individual mandate penalty.
As for subsidies, the IRS reports that about 2.7 million people claimed a total of about $9 billion in subsidies, with the average subsidy coming in at $3,400.