Q: Colorado health insurance question
In 2016 I had a mix of ACA, employee, and Medicaid health insurance. As I was unemployed at the end of 2015 I had signed up for Medicaid. From that point on we received conflicting mail from the state saying it as on, off, etc - never clear. Thinking it was off at the time I started a new job in February, I signed up for 3 months of the ACA because there was a 90 day gap. These 3 months qualified for huge tax credits because the state didn't know I started the job. In filing taxes for the year these credits were discovered, and a refund turned into a large bill. I verified with the state that for the entire year I WAS on Medicaid; if I had known that I wouldn't have signed up for anything else. My 1095A shows these credits for the ACA, while the 1095B shows Medicaid. I called the IRS, they said to call the state - the state said to call the IRS. Is there a way to make the 1095A void because of the mix up? One would think the B would trump the other but to the IRS, it doesn't matter.
A:
Based on your facts, the two 1095s show that you were doubly insured (which you now already know). The IRS does not consider insurance options--they only compute the penalties. Colorado will likely demur because you acted on your own behalf (even if based on confusion). As a result, the dual insurance will likely stand.
You can appeal the determination with the IRS, but you will need to contact (and pay for) a tax attorney's assessment. There may be grounds for an abatement of the tax, but a lot more information is needed before an assessment can be made.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
