Individual Health Insurance Mandate

Beginning in 2014, the health reform law requires most individuals to have health insurance for themselves and their spouses or dependents

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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

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