A lot of the medical practices we service are asking us questions about the Affordable Care Act (Obamacare) and how it may affect their patients.
One of the questions we hear asked is if there is a fee, penalty or tax for not having health insurance
as some of the young adults don’t want health insurance and just pay cash if they do need to see a doctor.
According to the government:
Starting January 1, 2014, if someone doesn’t have a health plan that qualifies as minimum essential coverage, he or she may have to pay a fee that increases every year: from 1% of yearly household income (or $95 per adult, whichever is higher) in 2014, to 2% of income (or $325 per adult), to 2.5% of income (or $695 per adult) in 2016. The fee for children is half the adult amount. The fee is paid on the federal income tax form.
So yes, call it what you want, a fee, a penalty or a tax but if you do not purchase health insurance coverage you will have to pay a fine.
Here are the penalties by year. As you can see a family choosing not to have health insurance in 2016 will have to pay a fine of $2,085.
|FEE FOR NOT HAVING HEALTH INSURANCE|
|Adult||$ 95.00||$ 325.00||$ 695.00|
|Child||$ 47.50||$ 162.50||$ 347.50|
|$ 285.00||$ 975.00||$ 2,085.00|
Here is a link to HealthCare.gov where you can check out the fee you pay if you don’t have health coverage and if you can get an exemption from the fine or tax.
What are your thoughts? Can you pay more than 2 grand for not having health insurance next year? Leave me a comment below.