November 10, 2014

The Fee You Pay if You Don't Have Health Coverage

Over the past few weeks, we have written on the requirements to comply with the Affordable Care Act. If an individual does not have insurance that qualifies as minimum essential coverage, the individual will pay either a percentage of his or her household income or a flat fee -- whichever is higher. The figures below are taken from HealthCare.gov.

2014 Fee

If you don't have coverage in 2014, you will have to pay the higher of these two figures:
  1.  1% of your yearly household income
    • The maximum penalty is the national average premium for a bronze plan
  2. $95 per person for the year ($47.50 per child under 18)
    • The maximum penalty per family who chooses to use this method is $285
2015 Fee

If you don't have coverage in 2015, you will have to pay the higher of these two figures:
  1.  2% of your yearly household income
    • The maximum penalty is the national average premium for a bronze plan
  2. $325 per person for the year ($162.50 per child under 18)
    • The maximum penalty per family who chooses to use this method is $975
After 2015

The fee will increase each year. In 2016, the fee will be 2.5% of income or $695 per person. 

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