Tuesday, October 08, 2013 3:08:18 PM
Q Do I have to buy health insurance because of Obamacare?
A
Starting in 2014, according to the Affordable Care Act (also known as Obamacare), the vast majority of American citizens will be required to have health insurance or pay a penalty. This rule is called the individual mandate.
Here are the penalties for noncompliance:
- For 2014: $95 per adult and $47.50 per child (up to $285 for a family) or 1% of family income*, whichever is greater.
- For 2015: $325 per adult and $162.50 per child (up to $975 for a family) or 2% of family income*, whichever is greater.
- For 2016: $695 per adult and $347.50 per child (up to $2,085 for a family) or 2.5% of family income*, whichever is greater.
*Income is defined as total income in excess of the filing threshold, which is $10,000 for an individual and $20,000 for a family in 2013.
However, a penalty won't be assessed on individuals who:
- Can't afford coverage based on formulas contained in the law*
- Have income below the federal income tax filing threshold
- Are members of Indian tribes
- Were uninsured for short coverage gaps of less than three months per year
- Have received a hardship waiver
- Live outside of the United States
- Have a religious exemption.
*An employer-sponsored plan is considered unaffordable if your cost for self-only coverage exceeds 9.5 percent of your income.
To find out if you're eligible for a subsidy that reduces the cost of health insurance, use our Obamacare Eligibility Calculator. You can shop and compare plans approved by the Affordable Care Act, no matter where you live.
