Taking A Look At Health Insurance Penalties

According to the Affordable Care Act, everybody who has the money for health insurance needs to get the necessary coverage for themselves; otherwise, they will have to pay a penalty. If you decide not to buy insurance at all, then you will have to pay a penalty for that, as well. This penalty will get higher and more expensive as time goes by.

This can definitely be quite burdensome for some people out there. However, if you qualify for coverage, then the good news is that there are resources available in today’s market that can help you pay for your insurance. Find out more about health insurance penalties here.

Penalty for Not Buying Insurance

If you don’t buy health insurance at all, then you will have to pay a penalty by 2014. If you already have insurance from another source, such as your employer, though, then you won’t have to buy any extra insurance. You just need to prove that your coverage meets the necessary requirements.

By 2014, the penalty for not buying insurance will either be $95 per person or 1% of their annual income, depending on which one is higher. As mentioned earlier, this penalty will also get higher every year.

By 2015, the penalty will be $325 for an uninsured adult and $162.50 for an uninsured child. For entire uninsured families, the penalty will either be $975 for the family or 2% of their annual income, depending on which one is higher.

By 2016, the penalty will be $695 for an uninsured adult and $347.50 for an uninsured child. For entire uninsured families, the penalty will either be $2,085 or 2.5% of their annual income, depending on which one is higher.

Avoiding Penalties

In order to avoid these penalties, you need to make sure that your health coverage meets the threshold for minimum essential coverage. Fortunately, every insurance policy found in the Exchange meets these requirements.

There are several insurance plans that don’t meet these requirements, though, such as dental or vision insurance, medical service plans and workers’ compensation insurance.

There are also several cases, wherein you won’t have to worry about paying penalties at all: if you have been uninsured for three months or less in a year and if your income is so low that you can’t afford insurance premiums or aren’t required to file tax returns, for example.

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