Wolters Kluwer Tax & Accounting looks at healthcare selections for 2021 in an atmosphere of the COVID-19 pandemic and the Supreme Court arguments on the Affordable Care Act.
- Employee enrollments in employer-sponsored health plans typically occur in the last quarter of the year. Even if employees were able to do mid-year 2020 revisions to their health plans and FSAs, they must still enroll again for 2021
- Despite the uncertainty around the Affordable Care Act, open enrollment with the Health Insurance Marketplace continues normally for 2020, with the 2020 open enrollment period from November 1, 2020 to December 15, 2020, with coverage starting January 1, 2021
- A special enrollment period with the Health Insurance Marketplace may also be available for the remainder of 2020 for people who have special situations, such as lost health coverage, getting married, moving, or having a baby or adopting a child
- Open enrollment for MEDICARE health and drug plans runs from October 15, 2020 through December 7, 2020
- Eligible low-income individuals may enroll in MEDICAID or the Children’s Health Insurance Program (CHIP)
- Individuals affected by COVID-19 may be granted extensions of some of these deadlines
- The medical expense deduction threshold, which remains at 7.5 percent of adjusted gross income on 2020 tax returns, under current law reverts to 10 percent of AGI for 2021 tax returns