Thursday, November 16, 2023
HomeHealth CareUnderstanding 2016 Charges for No Well being Insurance coverage

Understanding 2016 Charges for No Well being Insurance coverage


Printed on December 11, 2015

Do you know that having medical insurance when you’ll be able to afford it’s the legislation? If you happen to can afford medical insurance, however select to not get it for 2016, you might be required to pay a payment — typically known as the “penalty,” “high quality,” or “particular person mandate” — whenever you file your 2016 federal revenue taxes.

The excellent news is, inexpensive protection by means of the Well being Insurance coverage Market® is accessible. After monetary assist, 7 out of 10 individuals can discover plans with premiums of lower than $75 {dollars} per 30 days. If you happen to enroll by December 15, 2015, your protection will begin January 1, 2016.

Wish to see plans and costs accessible to you earlier than you apply? You’ll be able to preview 2016 plans and costs right here — you might be stunned to study simply how inexpensive medical insurance could be.

Breaking it down: the payment

Listed here are 5 fast information in regards to the payment for not having well being protection when you’ll be able to afford it:

  1. The payment is calculated 1 of two methods, relying in your scenario. It’s both a share of your annual family revenue or a set quantity for every individual in your family who doesn’t have medical insurance. Once you file your federal revenue taxes, when you’re uninsured for greater than 3 months regardless of accessing inexpensive protection, you’ll be required to pay whichever quantity is larger. Discover ways to estimate the payment you’ll should pay when you don’t have medical insurance based mostly in your scenario.
  2. The payment is rising for 2016. For 2015, the penalty for no medical insurance is $325 per individual or 2% of your annual family revenue – whichever is larger. For 2016, the payment is $695 or 2.5% of your revenue — whichever is larger. For many individuals, that’s greater than the yearly value of well being plans they will discover on HealthCare.gov.
  3. Each month with out protection counts. The payment is calculated based mostly on the variety of months you and your family went with out . The extra months you go with out well being protection, the upper the payment, as much as the utmost. (However when you’re uncovered for only one or 2 consecutive months, you don’t should pay the payment in any respect.)
  4. For some individuals, exemptions from the payment can be found. Folks with very low incomes and people who meet different particular circumstances can get an exemption from the requirement to have medical insurance and gained’t should pay the payment. Be taught extra exemptions, and see when you qualify.
  5. You’ve till January 31 to enroll in a 2016 plan to keep away from the payment. The ultimate deadline to join 2016 protection is January 31. A Particular Enrollment Interval across the April 15 tax submitting deadline gained’t be provided in 2016. If you happen to don’t enroll by then, you may have to attend one other 12 months to get protection and will should pay the payment whenever you file your 2016 revenue taxes.

Prepared to use and keep away from the payment?

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments