What’s the cheapest way to avoid the Obamacare penalty?

The Obamacare penalty is still on the books for 2018.

Though recent legislation has repealed the much-discussed “individual mandate” from the Affordable Care Act, that repeal is set to take effect in 2019. That means that the penalty for not having ACA-compliant health coverage is still on the books for 2018.

How much is the Obamacare penalty?

Your penalty is the higher of:

  • $695 per adult + $347.50 per child
  • 2.5% of your gross household income (minus the amount of the minimum filing threshold).
    • The most recent number available to calculate minimum filing threshold is $10,350 for a single person under the age of 65 and $20,700 for a married couple filing jointly.

(NOTE: We are not tax experts and don’t offer tax advice. Talk to your CPA or tax pro for detailed advice!)

The maximum penalty is the total yearly premium for the national average price of a Bronze plan sold through the Marketplace. The maximum penalty for an individual.

You can estimate your penalty amount here.

How to Avoid the Obamacare Penalty

If you missed Open Enrollment and cannot buy a qualified plan, the cheapest way for you to avoid the penalty is by participating in a qualified “Health Sharing Ministry,” because they are exempt from the mandates of the Affordable Care Act.

If your primary goal is simply along the lines of “Keep me legal for less,” you could consider Altrua Health Share’s Copper plan. The Copper 10,000 plan costs $90/month for an individual or $140/month for a couple. 

You would have a $10,000 “member responsibility amount” (i.e. you pay the first $10k in your healthcare costs). After you’ve paid $10k Altrua would provide a maximum “sharing amount” of $150,000 for the year.

Click here to enroll in Altrua HealthShare. 

Unlike other health sharing ministries, Altrua does not have a theological statement of beliefs you have to affirm to become a member. There is a simple “Statement of Standards” that has more to do with lifestyle than theology.

As always, if you have questions or would like to learn more, contact us.


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