The Individual Mandate is a frequent, and often heated topic of conversation. Many people are concerned about the financial impact of federally mandated health care coverage. One area of confusion is who must pay a penalty for being uninsured, beginning in 2014. Will you? Read below to see if any of the following apply:
NO, you will not pay a penalty if you are uninsured and you are:
- a member of a religion that opposes accepting health insurance policy,
- an undocumented immigrant,
- a member of an Indian tribe,
- your income is below the tax return filing threshold, or if you have to pay more than 8% 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 Health Insurance Program (CHIP), TRICARE (for service members, retirees, and their families).
- The veteran health program.
- A plan offered by an employer.
- Insurance bought on your own that is at least at the Bronze level.
- A grandfathered health 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? The 2014 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.
Source: downloadble KFF.org summary