health insurance back dated?

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northtexan
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Joined: Mon Jul 11, 2016 8:11 pm

health insurance back dated?

Post by northtexan » Tue Sep 10, 2019 7:17 pm

I have a really strange question/situation regarding healthcare insurance.

I am a student who recently turned 26 and got off my parents insurance. I was suppose to get health insurance through my school. I paid for the health insurance but for some reason I was never enrolled and coverage was suppose to start on 7/12/19. There is an option to get enrolled and have the insurance state that coverage was from 7/12/19 to 1/12/20. My only concern is that I technically did not have health insurance for the past few months, for tax purposes if the health insurance gets back dated can I report on my taxes that I did not have a lapse in health insurance?

I just don't understand if I could go without insurance for a few months and get coverage for those months after the fact, and be in compliance with the IRS.

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MP123
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Re: health insurance back dated?

Post by MP123 » Tue Sep 10, 2019 7:23 pm

You should by all means have health insurance.

But for 2019 the penalty for not having coverage (the individual mandate) was lowered to $0. So even if you don't have coverage there is effectively no penalty.

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RickBoglehead
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Re: health insurance back dated?

Post by RickBoglehead » Tue Sep 10, 2019 7:27 pm

Backdating insurance is fine. COBRA does it.
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Topic Author
northtexan
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Re: health insurance back dated?

Post by northtexan » Tue Sep 10, 2019 7:30 pm

MP123 wrote:
Tue Sep 10, 2019 7:23 pm
You should by all means have health insurance.

But for 2019 the penalty for not having coverage (the individual mandate) was lowered to $0. So even if you don't have coverage there is effectively no penalty.
I do want to have health insurance, there was a billing or paperwork incident to where my school didn't send the funds to allow me to enroll and it took over a month to figure out what exactly happened. I have been told that they cannot prorate the coverage and payment. I just don't want to pay for something I did not actually have and then have to pay a penalty. I have chosen not to go to the doctor (thankfully I don't need to other than physical exam type visits) since I do not have coverage and don't want to pay out of pocket with the hopes of getting reimbursed.

I did not know about the mandate being dropped this year. Makes me feel better about the possible lapse in coverage.

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MP123
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Re: health insurance back dated?

Post by MP123 » Tue Sep 10, 2019 7:36 pm

northtexan wrote:
Tue Sep 10, 2019 7:30 pm
I did not know about the mandate being dropped this year. Makes me feel better about the possible lapse in coverage.
My understanding is that the mandate is still in place but that congress reduced the penalty to zero. It's a fine point but I'm not sure if reporting non compliance (even with no penalty) will be required.

Kennedy
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Re: health insurance back dated?

Post by Kennedy » Tue Sep 10, 2019 9:25 pm

HR departments do this all the time when correcting errors made in signing people up for insurance. I wouldn't give it a second thought.

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Eagle33
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Re: health insurance back dated?

Post by Eagle33 » Tue Sep 10, 2019 9:57 pm

Even if the penalty still existed in 2019, one can get up to a 3 month exception for no insurance.
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