Ins. Premium tax repayment - unaware of coverage

Hi all, client signed up for CA govt health insurance coverage a number of years ago. However, taxpayer started a W2 job 2 years ago and signed up for employer sponsored health insurance. Client was unaware CA govt health insurance renewed automatically every year. Now for 2022, client provides form 1095 which shows premium advance of $8k on govt health insurance and since income was substantial for 2022 the entire $8k needs to be paid back. Is there any way client can avoid paying back $8k premium tax repayment for unaware of/forgotten 2nd health insurance thru CA govt? Thanks !

I had a situation like that a few years ago. Thankfully, income was low enough that the repayment amount was limited, so she just paid it. But before we realized that, we talked about calling up the exchange and/or the health insurance company and getting them the retroactively rescind the policy and pay back the subsidy to the government. She never actually made the phone calls. But I figure it was a long shot. You might give it a try, if you think the savings would be worth the effort given the doubtfulness of the results.

Otherwise/most likely, I think he'll just have to pay the APTC repayment amount.

How did client make the monthly payment and not realize it?

The premium may have been fully subsidized by the APTC (which was the situation with my client).

But for two years? Don't they send letters or email? Don't you have to re-enroll each year?
I don't know the answers. Just wondering.

For my client and OP's, re-enrollment was automatic.

Correct, health insurance was fully subsidized and CA is automatic renewal. Clients moved so they didn't get any notices. Very unfortunate situation. Costing clients close to $10k which is a huge financial hit for them.

At least you can count it as a medical expense.

Good point, helps offset some of the cost.