HCAA Question

What are the penalties for failure to carry healthcare insurance under new health care law?

Asking for info only. Not debate.

Bearmaster.

The fee for not having insurance in 2014 is $95 per adult and $47.50 per child or 1% of your taxable income (up to $285 for a family), whichever is greater.

2014 = $95 per person per year or 1% of your Income
2015 = $325 per person per year or 2% of your Income
2016 = $695 per person per year or 2.5% of your Income
2017 = Tax Penalty will increase by the rate of inflation going forward (cost of living), or 2.5% of your Income

The penalty is based on modified adjusted gross income.

Ӣ The total penalty for the taxable year cannot exceed the national average of the annual premiums of a bronze-level health insurance plan offered through the health insurance marketplaces.

Ӣ The maximum penalty per family is capped at no more than 300% of the minimum penalty (e.g. $695 x 300% = $2,085)

Ӣ Children under 18 are assessed at 50% of the minimum penalty.

Ӣ The penalty is pro-rated for the number of months you are without health insurance, though there is no penalty for a single gap in coverage of less than 3 months in a year.