Individual Mandate Exemption Fees


        The Individual Mandate Exemptions

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The penalties for not having health coverage are set to increase by fixed amounts for 2014, 2015 and 2016 and then will be adjusted for inflation in subsequent years. Fees can be calculated one of two ways — a percentage of your household income or a flat fee—and your fee will be whichever of the two amounts is higher. For the percentage method, only the amount of income above the tax filing threshold (about $10,000 for an individual) is taken into account; the maximum penalty using this method is the national average premium for a bronze level plan.

For 2014:

     • 1 percent of your yearly household income

     • $95 per person for the year ($47.50 for each child under age 18);
     maximum penalty per family using this method is $285

For 2015:

     • 2 percent of your yearly household income

     • $325 per person for the year ($162.50 for each child under age 18);
     maximum penalty per family using this method is $975

For 2016:

     • 2.5 percent of your yearly household income

     • $695 per person for the year ($347.50 for each child under age 18);
     maximum penalty per family using this method is $2,085

For 2017 and subsequent years:

     • Adjusted for inflation

One of the key components of the Affordable Care Act (ACA) is that everyone is required to obtain health coverage. If you don’t have coverage, you are not only responsible for paying all of your health care expenses out of pocket, but you will also be subject to a fee. However, in a few special situations, you may qualify for an exemption from the penalty.


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