How much is the penalty for not buying Health Insurance?

Starting January 1, 2014, most consumers must have health insurance. This may be through your employer, coverage you buy for yourself, Medicare, or Medi-Cal.

Consumers who don’t have health insurance may have to pay a penalty called a “shared responsibility fee” that increases each year up to a maximum amount.

2015: The fee is 2% or $325 per adult, plus kids.

In 2015, the fee is 2% of the annual household income, or $325 per adult, whichever is higher.

In 2016, the fee increases to 2.5% or $695 per adult, whichever is higher.

For example, the chart below shows the penalty with the maximum for an uninsured household of four:
Health-Insurance-Penalty-Fee-2015-2016
If you’re uninsured for just part of the year (longer than 3 months), you pay a pro-rated penalty.  That is, 1/12 of the yearly penalty for each month you’re uninsured.

The penalty is due when you file your taxes at tax time.

Remember, if you are uninsured you also pay 100% of your medical costs.

The Good News: Help is Available.

If you can’t afford either the monthly premiums or the penalty, there is help available.  Call me at 626-676-3466 and we can discuss your options.

 

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