How Much Will the ObamaCare Penalty Cost?
Every year, American taxpayers face a tax penalty for not having health insurance. We’re talking about the dreaded “ObamaCare penalty.”
Those who do not sign up for health coverage are subject to a maximum penalty of $695 or 2.5 percent of income–whichever is greater.
Those who can afford health coverage must purchase a Qualified Health Plan. These are plans such as Medicare, Medicaid, and Health Insurance Marketplace Plans.
Click here for a full list of Qualified Health Plans.
Breakdown of the ObamaCare Penalty
The Individual Shared Responsibility Payment—otherwise known as the “penalty, “fine,” “fee” or “ObamaCare penalty”—is calculated in one of two ways. The taxpayer will pay the greater amount.
So if one does not enroll in coverage, he is subject to paying the penalty on a Percentage of Income basis, or he/she will pay the penalty on a Per Person charge.
The percentage rate that an individual/family would owe to the IRS on the percentage of Income would be 2.5 percent. The charge per person rate is up to $695 per adult and $347.50 per child under 18.
How to Avoid the ObamaCare penalty
There is an easy solution to avoid paying a penalty. Americans can enroll in a Qualified Health Plan through healthcare.gov or by calling a health insurance agent.
It is important for those with employer coverage to inquire about their health insurance. Ask your employer if your employer-sponsored health insurance is ACA-compliant. This is the best way to avoid the ObamaCare penalty if you purchase employee coverage.
It will always be easier to talk to an agent to find a Qualified Health Plan. The insurance agents at American Exchange enroll persons in Qualified Health Plans every day, so we know a thing or two about ACA-compliance. We can keep you from paying the ObamaCare penalty! Call us at 1-888-995-1674*!
Philip Strang is an insurance agent specializing in health insurance enrollments for individuals and families. He can match you with the proper on or off Marketplace plan in 30 minutes or less. He writes blog posts about health insurance for individuals and families in his spare time.