The “individual responsibility” section of the law requires that individuals who can
afford to do so maintain a minimum level of coverage, or else pay a tax penalty.
Many types of coverage, including employer-sponsored and individually purchased
private plans, Medicare, Medicaid, CHIP, and military and veterans’ plans can meet
this requirement. The following people are exempt from the individual responsibility
requirements: people with low incomes who are not required to file taxes; members
of certain religions that are exempted for religious reasons; people who are
incarcerated, people who are not legal residents; members of an Indian tribe, people
who go without coverage for less than three months; and people who do not have an
affordable offer of coverage, either through the exchange or through their employer.
In this case, coverage is considered “affordable”
if the monthly premium does not
consume more than 8 percent of a family’s income in 2014 (indexed in later years to
account for both premium and wage increases). Individuals who do not fall into any of
the categories listed above, but who would face hardship if they purchased coverage,
may file for an exemption from the individual responsibility requirements.
The penalties for individuals who do not maintain coverage will phase in over time.
In 2014, people who forgo insurance for the year will pay the greater of: a) $95
per adult family member without coverage (and half that amount for each child),
up to a maximum of three times that amount for a family ($285); or b) 1 percent of
their taxable household income. In 2016, the amounts are $695 per adult family
member without coverage, up to a maximum of $2,085 for a family, or 2.5 percent of
taxable income. Whether a family pays the flat-dollar penalty or a penalty based on
a percentage of taxable income, the penalty they pay will never exceed the national
average cost of covering the family through a bronze plan sold in the exchange.
= new reply since forum marked as read
