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Understanding 2016 Charges for No Well being Insurance coverage

Revealed on December 11, 2015

Do you know that having medical insurance when you’ll be able to afford it’s the legislation? For those who can afford medical insurance, however select to not get it for 2016, you could be required to pay a charge — generally known as the “penalty,” “superb,” or “particular person mandate” — while you file your 2016 federal earnings taxes.

The excellent news is, reasonably priced protection by 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 thirty days. For those who enroll by December 15, 2015, your protection will begin January 1, 2016.

Wish to see plans and costs obtainable to you earlier than you apply? You may preview 2016 plans and costs right here — you could be stunned to study simply how reasonably priced medical insurance could be.

Breaking it down: the charge

Listed here are 5 fast info concerning the charge for not having well being protection when you’ll be able to afford it:

  1. The charge is calculated 1 of two methods, relying in your state of affairs. It’s both a proportion of your annual family earnings or a set quantity for every individual in your family who doesn’t have medical insurance. While you file your federal earnings taxes, should you’re uninsured for greater than 3 months regardless of getting access to reasonably priced protection, you’ll be required to pay whichever quantity is greater. Learn to estimate the charge you’ll should pay should you don’t have medical insurance primarily based in your state of affairs.
  2. The charge is growing for 2016. For 2015, the penalty for no medical insurance is $325 per individual or 2% of your annual family earnings – whichever is greater. For 2016, the charge is $695 or 2.5% of your earnings — whichever is greater. 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 charge is calculated primarily based 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 charge, as much as the utmost. (However should you’re uncovered for only one or 2 consecutive months, you don’t should pay the charge in any respect.)
  4. For some individuals, exemptions from the charge can be found. Individuals with very low incomes and people who meet different particular circumstances can get an exemption from the requirement to have medical insurance and received’t should pay the charge. Be taught extra exemptions, and see should you qualify.
  5. You will have till January 31 to enroll in a 2016 plan to keep away from the charge. The ultimate deadline to join 2016 protection is January 31. A Particular Enrollment Interval across the April 15 tax submitting deadline received’t be provided in 2016. For those who don’t enroll by then, you might have to attend one other 12 months to get protection and will should pay the charge while you file your 2016 earnings taxes.

Prepared to use and keep away from the charge?

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