Penalty for Not Having Health Insurance

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Penalty for No Health Insurance

What is the Penalty for No Health Insurance?

The penalty for not having health insurance that qualifies as minimum essential coverage will result in a fee.

How Much is the Penalty for Not Having Health Insurance?*

Under the Affordable Care Act penalty, your fee is calculated one of 2 ways. You’ll pay the higher of these amounts for 2014:

  • 1% of your income; OR
  • $95 per adult ($47.50 per child under18; family maximum $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.)

The penalty increases every year.

  • In 2015, it’s 2% of income or $325 per person.
  • In 2016 and later years, it’s 2.5% of income or $695 per person.
  • After 2016, it’s adjusted for inflation.
  • If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured.
  • If you’re uninsured for less than 3 months, you don’t have to make a payment.

If you owe a fee, you’ll pay it on your 2014 federal income tax return.

Obamacare Bill

The healthcare act or Obamacare opens the door for those who don’t have health insurance. Individuals who need subsidized insurance assistance can get financial help from the federal government to purchase health insurance.

*Source: www.healthcare.gov