Tag Archives: minimum essential coverage

2015 Tax Penalty for No Health Insurance

Penalty fee for not having health insurance in 2015

Most people are finding that health insurance this year isn’t as “affordable” as they thought it would, so their next question after they get a quote is what is the penalty fee for not having health coverage in 2015?

Well the fee is calculated one of 2 ways. If you or your dependents don’t have a plan that is ACA compliant or that has minimum essential coverage you’ll pay the higher amount of either a percentage of your household income or a flat fee.

The penalty fee for not having health insurance in 2015

When you file your taxes for 2015, and it asks if you had minimum essential coverage, and you didn’t, you will pay 2% of your income or $325 per adult/$162.50 per child, whichever is more.

To break that down even more:
2% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) There is a maximum penalty in this category which is the national average premium for a bronze plan.

$325 per person for the year ($162.50 per child under 18). The maximum penalty per family using this method is $975.

The penalty fee for not having health insurance in 2014

For those of If you didn’t have coverage in 2014, you’ll pay the higher of these two amounts when you file your 2014 federal tax return:

1% of your yearly household income. (Only the amount of income above the tax filing threshold, about $10,000 for an individual, is used to calculate the penalty.) The maximum penalty is the national average premium for a bronze plan.

$95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The penalty fee for not having health insurance after 2015

The penalty increases every year. In 2016 it’s 2.5% of income or $695 per person. After that it’s adjusted for inflation.

Generally, the cost of a Bronze plan is about as much as you would pay for the penalty, so if you feel you may have to pay the penalty, why not pay the money and have some coverage, verses paying it for nothing?? Just food for thought.

For a quote on the bronze plan click here

To see if you qualify for a subsidy, click here

Plan Renewal Special Enrollment Period

While the Open Enrollment for Health Insurance has ended for 2014, there are still situations where an person can qualify for a Special Enrollment Period. If you have an Individual Health Insurance Policy that has a non-calendar year Renewal this year, you may qualify for a Special Enrollment Period, or SEP. This could occur if you have a Grandfathered or non-Grandfathered transitional policy. If you receive a renewal notice from your Insurer, please give us a call at 877-740-8683, to discuss your options and find out if it is in your best interest to shop for a new policy. This SEP is in addition to the COBRA Special Enrollment Period , relating to Group Health Insurance, that will last until July 1st. There are also the regular Qualifying Life Events that will trigger an SEP. The Qualifying Life Events, or QLE’s, can include such things as gaining a dependent, through birth, marriage or adoption. If you lose Minimum Essential Coverage, through no fault of your own, this can also qualify for an SEP. This could result from a loss of a job, reduction in hours, divorce, or a permanent move. There are complex deadlines surrounding the triggering events. While most SEP’s have a 60 day day window, there are some with only 30 days. If you thing you might qualify for an SEP, please call 877-740-8683, or visit www.healthreformenrollmentcenter.com , to speak to a licensed Insurance Agent for a person evaluation of your situation. If you can’t qualify for an SEP, there are still options available for Short Term Insurance, and the 2015 Open Enrollment will start November 15th.