Payments of Penalties for Being Uninsured Under the Affordable Care Act

Well, the most liked feature of health care reform is the penalty for not being insured. I hope you see the sarcasm here. I asked a few of my neighbors and friends, “So, what do you know about the penalties for not having insurance?” To my surprise….. most said “95 dollars the first year and three hundred something the second”. Well, that is the correct levels based on certain income levels. I pulled the CBO’s updated pages from this past June. Here is the link: http://www.cbo.gov/

Shocking, the flat rate health insurance penalty is what most people understand. When we look at the wording, it breaks down like this.

The first year 2013:  The penalty in 2014 is calculated one of 2 ways. If you or your dependents don’t have insurance that qualifies as minimum essential coverage you’ll pay whichever of these amounts is higher. – This pulled directly from healthcare.gov, whichever is higher!

1% of your yearly household income. (Only the amount of income above the tax filing threshold, $10,150 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan

Or: $95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285

The way the penalty is calculated, a single adult with household income below $19,650 would pay the $95 flat rate. A single adult with household income above $19,650 would pay an amount based on the 1% rate. (If income is below $10,150, no penalty is owed.)

So, one percent of your AGI (Adjusted Gross Income) or if your income is below $10,150 or below $19,650, it is $95 or $0 (zero) for the lesser amount.

They do have exceptions you can avoid the fines.  Please click here to see the list of hardship exemptions and exemptions from payment.

The fines increase for 2015. Good thing the open enrollment is just around the corner. During this enrollment period, we can get you an on-exchange plan or off-exchange plan that meets the minimum essential benefit guidelines. Please see our product page or contact us for assistance.

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