Under this law, everyone will have to have health insurance or pay a penalty. If you choose to pay the penalty instead of securing coverage, you will still be responsible for 100% of your medical care. The penalty is calculated in one of 2 ways (you pay whichever is the higher amount). In 2014, the penalties will be calculated as:
1) 1% of your yearly household income – featuring a maximum penalty as the national average yearly premium for a bronze plan.
2) $95 per person for the year (If under age 18, then $47.50) – featuring a maximum penalty per family of $285 under this method.
It’s important to note that the penalty will change each year. In 2015, method one increases to 2% of your yearly household income and method two increases to $325 per person. In 2016, it will increase again to 2.5% for method one and $695 per person for method two. The penalty methods will be adjusted for inflation in later years.
To avoid the penalty, you need to have health insurance that qualifies as minimum essential coverage.
If you have any questions about health insurance plans or would like a free quote comparison, please feel free to give us a call at 1-800-571-2980. You can also reach us by e-mail at Info@terminsurancebrokers.com 24 hours a day.