How much will I have to pay if I don’t have health insurance for 2017?
You will be assessed the Fee if for every month you don’t have “qualifying health coverage” (coverage that meets the “minimum essential coverage” defined in the Affordable Care Act). If you are uncovered for only 1 or 2 months, you may not have to pay a fee, but if you are without coverage for more than 2 months, you will be subject to “The Fee” (and that stinks).
For example, if you go 4 months without coverage during the year, you will be assessed a prorated fee 4/12 of the fee listed below.
When you prepare your tax returns for 2017, you will have to reconcile the months you were required to have insurance vs. the months you didn’t have coverage (4 in this case), and pay your fee when you file your return.
What is the Fee?
Under the Affordable Care Act (Obamacare) you will be assessed a penalty if you can afford health insurance but choose not to buy it. The fee you will pay is called the “Individual Shared Responsibility Payment.”
How Much is the Fee for 2017?
The fee is calculated 2 different ways:
- as a percentage of your household income
- per person.
You’ll pay whichever is higher.
1. Percentage of Income
2.5% of household income (the maximum for this calculation is limited to the total yearly premium for the national average price of a Bronze plan sold through the Marketplace)
2. Per person
$695 per adult, and
$347.50 per child under 18
(Maximum: $2,085 per household)
Exceptions
There are a few exceptions for not having to pay “The Fee.” These generally have to do with income or personal circumstances. You can check out the tool on healthcare.gov to see if you qualify for any of these.
Healthcare.gov also has a blip at the bottom of their article about the fee called “What happens if I don’t pay the fee?” Check it out if you want clarification from the horse’s mouth about how the fee is collected, etc.
If you have questions about getting covered, curious about what it’s going to cost you, or would like help navigating through your health insurance options, Schedule a Time that works best for you and we’ll help you get it taken care of.
