Why Extending Obamacare's Deadline Might Backfire

The window to buy Obamacare insurance closed on Feb. 15—except where it didn't. Many consumers stymied by website glitches at the deadline will get an extra week to enroll. In Washington state, officials announced on Monday that people will have an extra two months to sign up for health plans, through April 17. That gives uninsured people who learn about the tax penalties of skipping coverage between now and the April 15 tax deadline a chance to sign up.

A group of Democratic senators is urging the Obama administration to extend the deadline nationwide, and Health and Human Services Secretary Sylvia Matthews Burwell told Bloomberg last week that she's considering it. The 2014 tax year is the first time people will be fined for not having insurance. As many as 6 million people may have to pay $95 or 1 percent of income, whichever is higher. Those who don't have coverage for 2015 will face greater penalties next tax season: $325 or 2 percent of income. Americans who don't know about the penalties may have gone without insurance in 2014. By the time they learn about the fines when they file their 2014 tax returns this year, it will be too late to get coverage for 2015 and avoid another penalty next year—unless the administration pushes back this year's enrollment deadline.