Beginning in 2014, the health reform law requires most individuals to have health insurance for themselves and their spouses or dependents
The requirement is for each individual to have MEC or pay a potential penalty for noncompliance. Coverage may be obtained through government programs such as Medicare or Medicaid; employer or individual insurance market; or Health Insurance Marketplace (Exchange). The individual mandate penalty is capped for a family at 300 percent of the individual penalty. Please consult a tax advisor with questions.
Cost of Individual Mandate Penalty
If individuals do not elect coverage offered by their employer and do not have other coverage, in 2014 there will be a tax penalty based on the individual’s income. Please consult a tax advisor with questions.
2014 – $95 per uninsured person or 1 percent of household income over the filing threshold (whichever is greater)
2015 – $325 per uninsured person or 2 percent of household income over the filing threshold (whichever is greater)
2016 – and beyond, $695 per uninsured person or 2.5 percent of household income over the filing threshold (whichever is greater)
2017 – going forward, the penalties will be increased by the cost-of-living adjustment