The annual Obamacare penalty for 2015 has increased to 2% of your household income or $325 per adult, whichever is greater. If you don’t have health insurance, you’ll pay for each month you go without coverage. However, you may qualify to apply for 1 of 20 exemptions available.
How will the penalty be collected?
Penalties are collected through the tax-filing process. If you already owe money to the IRS, you’ll owe more with the penalty. If you’re expecting a tax refund, it will be reduced to pay the penalty.
What’s the worst-case scenario?
For families, the penalties could really add up. Fees are capped at the national average price of the lowest-cost bronze plan available through the Marketplace. For 2015, the maximum penalty is:
- $2,484 for an individual.
- $12,420 for a family of five or more.
Which is cheaper—insurance premiums or the penalty?
In 2014, many people decided to pay the penalty rather than purchase health insurance. However, as the penalties go up, so does your incentive to enroll in a health insurance plan. If you’re worried about being able to afford coverage, you may qualify for government assistance, also called subsidies. Millions already have qualified.
How many have to pay?
According to a recent CNN report, as many as 6 million people could face Obamacare tax penalties in 2014. Millions more will qualify for a coverage exemption.
If you are unsure about your situation, check out this Obamacare Exemption Guide. If you have questions, call our ACA Hotline at 1-800-673-8600.
-- By Ashley Robeson