Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Beginning in 2014, under the new affordable care act, everyone will have to have health insurance or pay a penalty (also known as an "individual shared responsibility payment"). If you choose to pay the penalty instead of securing coverage, you will still be responsible for 100% of your medical care. The penalty is calculated in one of two ways (you pay whichever is the higher amount).
In 2014, the penalties will be calculated as:
1) 1% of your yearly household income – featuring a maximum penalty as the national average yearly premium for a bronze plan.
2) $95 per person for the year (If under age 18, then $47.50) – featuring a maximum penalty per family of $285 under this method.
The penalty calculations will change each year. In 2015, method one increases to 2% of your yearly household income and method two increases to $325 per person. In 2016, it will increase again to 2.5% for method one and $695 per person for method two. The penalty methods will be adjusted for inflation in later years.
Please let me know if I can be of further assistance. Thanks very much.
Owner, Best Health And Car Insurance Rates - Instant Online Quotes, US
If you don't have the required type of health insurance, there is an Obamacare tax. Here's an accurate short answer based on my 33 years of experience as a health insurance broker.
The fine is a maximum of 1% of household income or $95 per adult and $47.50 per child. These amounts increase each year.
Do you have the right type of coverage to avoid the tax? Allow an experienced broker to help you find out.
If you do not have the required/accepted health insurance coverage you will be subject to a penalty. For 2015 the penalty is the higher of either 2% of annual household income or $325 per person over age 18. For 2016 the penalty is the higher of either 2.5% of annual household income or $695 per person over age 18. There are maximum penalties for all methods listed as well as reduced penalties for each person under age 18. Contact a experienced local agent for details...
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In 2014, the penalties will be calculated as:
1) 1% of your yearly household income – featuring a maximum penalty as the national average yearly premium for a bronze plan.
2) $95 per person for the year (If under age 18, then $47.50) – featuring a maximum penalty per family of $285 under this method.
The penalty calculations will change each year. In 2015, method one increases to 2% of your yearly household income and method two increases to $325 per person. In 2016, it will increase again to 2.5% for method one and $695 per person for method two. The penalty methods will be adjusted for inflation in later years.
Please let me know if I can be of further assistance. Thanks very much.
The fine is a maximum of 1% of household income or $95 per adult and $47.50 per child. These amounts increase each year.
Do you have the right type of coverage to avoid the tax? Allow an experienced broker to help you find out.