Affordable Care Act: The fee you pay if you don't have health coverage
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Most people know the Affordable Care Act requires Americans to purchase health insurance that qualifies as “minimum essential coverage.” On the other hand, many people who didn’t purchase the required health insurance aren’t aware of penalties they will have to pay. Or they may be confused about the amount of those penalties.
Penalties for Not Enrolling
Estimating how much your particular penalty will be can get confusing. Families need to pay close attention to how much it really will cost you to stay uninsured.
The penalty for not buying health insurance increases over the years. In 2015, the flat rate penalty will increase to $325 per adult and $162.50 per child through age 18, with the fee capped at $975 per family or 2% of 2015 yearly income over whatever the tax filing threshold is then, whichever is higher.
The penalty continues to increase in 2016. You will pay whichever is more, 2.5% of 2016 yearly income OR a flat fee of $695 per adult and $347.50 per child through age 18 (flat fee capped at $2,085 per family). Families would do well to compare the benefits of being insured to the high penalties they will be assessed for not having insurance.
The penalties will be assessed at the time a person files their income tax return. This may mean a taxpayer’s refund is smaller than expected, or they may owe more than originally estimated.
Go to https://www.healthcare.gov/fees-exemptions/fee-for-not-being-covered/ for more information about fees that will have to be paid for not having health insurance.
More information about all aspects of the Affordable Care Act can be found at www.HealthCare.gov.
