The Individual Mandate is a frequent and heated topic of conversation when it comes to the Obama health reform law.
The mandate is the requirement that every individual must buy a health insurance policy begininning in 2014. Many people are worried about the financial impact of such federally mandated health insurance coverage. One big area of confusion is who must pay the tax penalty for not having health insurance beginning in 2014.
Will you? Read below to see if any of the following apply:
NO, you will not pay a penalty if you con’t have health insurance and you are:
- A member of a religion that opposes accepting health insurance policy
- An undocumented immigrant
- Incarcerated
- A member of a Native American tribe
- Your income is below the tax return filing threshold, or if you have to pay more than 9.5% of your income for health insurance (after taking into account any employer contributions or tax credits).
Additionally, you will not pay a penalty if you are insured for the whole year through a combination of any of the following:
- Medicare, Medicaid or the Children’s Health Insurance Program (CHIP), TRICARE (for service members, retirees, and their families).
- The veteran’s health program.
- A plan offered by an employer.
- Insurance bought on your own that is at least at the “Bronze” level. (Health insurance plans on the government’s health insurance exchange are basically named after Olympic medals.)
- A “grandfathered” health insurance plan in existence before the health reform law was enacted.
If none of the above describes your situation, then YES, you will be subject to a penalty.
How much? In 2014, the penalty is $95 per adult and $47.50 per child (up to $285 for a family) or 1.0% of family income, whichever is greater.
Confused by “Obamacare?” Unsure about what to do or what your options might be? Let’s talk!