IRS letters nudge uninsured to get health coverage

Washington — If you haven’t signed up for health insurance, you may soon be getting a not-too-subtle nudge from the taxman.

The IRS is sending personalized letters to millions of taxpayers who might be uninsured, reminding them they could be on the hook for hundreds of dollars in fines under the federal health care law if they don’t sign up soon. It’s an unusual role for a revenue-collection agency.

Fines are one of the most unpopular parts of the 2010 health overhaul, and there’s a high likelihood they’ll get repealed by Republicans, even if other parts of the Affordable Care Act survive. The administration is counting on IRS reminders to help sign up as many people as possible before open enrollment ends Jan. 31. That’s soon after officials hand off President Barack Obama’s signature program to a Trump administration committed to “repeal and replace.”

Letters bearing the IRS logo will be sent to an estimated 7.5 million people who either claimed an exemption from the law’s requirement that most Americans carry health insurance, or who paid a penalty for being uninsured during the 2015 tax year. The coverage requirement was included in the law as a way to get healthy people into the insurance pool, helping keep premiums in check.

The penalty for this year could be $2,085 or more, depending on family size and income, says one draft version of the IRS letter. Another draft takes a somewhat different approach, leaving a blank space for the IRS to provide an individualized estimate of what the taxpayer might owe.

Republicans say the whole thing is a waste of money. The campaign will cost about $4 million, say congressional aides.