The fee for not having health insurance:
Most people are aware that having health insurance if you can afford it, is now the law. If you choose not to get it for 2016 you may have to pay a fee (also called a fine or penalty) when you file your taxes. If you do want health insurance, and your employer doesn’t provide it, you are able to purchase affordable coverage through the Health Insurance Marketplace during the Open Enrollment Period.
The fee for not having health insurance is calculated in one of two ways. It is either a percentage of your annual household income or it can be a set amount for each person in your household who didn’t have insurance coverage for more than three months in that year. You have to pay whichever of those amounts it higher.
The fee amount for 2016 will be significantly higher than it was in 2015. The penalty in 2015 was $325 per person or 2% of the annual household income. That is increasing to $695 or 2.5% of your annual income, whichever is higher.
There are exemptions for some people. Those with very low incomes or people who meet other specific conditions are eligible to get an exemption from the requirement to have health insurance.
Learn more about the Affordable Care Act and how Your Insurance Gal can help you with your insurance needs.