For the year 2014, the penalty for no health insurance will be applied. You will also be required to pay for all of your healthcare costs.
The penalty for no health insurance is also referred to as individual mandate, fine, penalty or individual responsibility payment.
The penalty for no health insurance is determined one of two ways. If you do not have insurance qualifying as minimum essential coverage, you will be required to pay whichever of the following amounts is greater:
1% of the yearly household income
$95 for the year for each person and 47.50 for each person under 18 years of age. Using this method, the maximum per family is $285.
If your household income is below $19,650 and you are a single adult the penalty for no health insurance would be $95.00. However, a single adult with a household income over 19,650 would be required to pay the amount based on the 1% rate. The penalty for no health insurance for an income below $10,150 is zero.
The penalty for no health insurance increases every year. For example, in the year 2015 it increases to 2% of your income or $325 per person. After the year 2016 it will be adjusted according to inflation.
You will most likely file your 2014 tax return in the year 2015 which is when you will pay the penalty for no health insurance.
We all end up paying the price for those that get urgent, expensive care that do not have healthcare coverage and don’t pay the bill.
For more information call (800) 299-9264
You need to take responsibility for your own healthcare insurance by getting coverage or paying the penalty for no health insurance. However, just by paying the fee, you will not be covered by any health insurance policy. You would still be responsible for 100% of your medical care.
It’s important to remember that even if you pay the penalty for no health insurance you still don’t have any health insurance coverage. You are still responsible for 100% of the cost of your medical care.
In order to avoid the penalty for no health insurance, you need insurance that qualifies as minimum coverage by any of the following:
Any individual health insurance plan or Marketplace plan
CHIP Children’s Health Insurance Program
TRICARE current military and retirees, families and survivors
Veterans healthcare programs
Healthcare coverage offered to students by universities that start on or before December 31, 2014
Peace Corps Volunteer plans
There could be other healthcare plans that will avoid the penalty for no health insurance. Check with your healthcare coverage provider.
Healthcare plans that do not qualify as coverage…
Healthcare plans that do not meet minimum essential coverage such as:
Plans that offer discounts on medical services
Coverage for specific conditions or diseases
Coverage for only dental or vision
Exemptions from the penalty for no health insurance
Some of those with certain situations and/or limited incomes. For more information regarding the penalty for no health insurance call (844) 325-8884.