If you don’t have health insurance, you’ll be liable to pay a penalty fee.
Did you know that by not purchasing a healthcare plan you are volunteering yourself to pay a hefty penalty fee each year? There are other negative effects of not having a health insurance plan like paying more for emergency healthcare and annual doctor visits, but the fee you’ll get hit with for not being enrolled in a health insurance plan isn’t fun either.
The penalty fee we’re talking about here is called the individual shared responsibility payment. Sounds intense, right? Those who can afford health insurance in Springfield, MO but choose not to buy it will be responsible for paying this fee. Even if you have a healthcare plan, if it doesn’t qualify as minimum essential coverage, you will still be liable to pay the fee for each month you, your spouse, and your dependants do not the minimum essential coverage.
If you are unemployed, you may very well qualify for an exemption, but it depends on your annual household income. There are also exemptions available for individuals with low income. You just need to find the health insurance exemptions that you qualify for and claim them. An insurance agent at Employee Benefit Design can assist you with this process and walk you through the details.
The penalty fee, or individual shared responsibility payment, is due when you file your federal taxes for the year. So if you did not enroll in health insurance in Springfield, MO (or any other location) in 2015, when you file your federal taxes in February, you’ll be hit with the fee. Although the government won’t go into your bank account and take the funds and there are also no criminal penalties for NOT paying the fee that is due, the amount will be deducted from your tax return.
If you aren’t enrolled in a health insurance plan, you’re probably wondering how much the fee is going to be for 2015. The total amount is either 2 percent of your household income or $325/adult and $162.50/child under 18. Whichever one ends up being the higher amount is what you’ll pay.
If you don’t sign up for a health insurance plan in 2016, your total fee will be 2.5 percent of your household income or $695/adult and $347.50/child under 18: whichever is most expensive.
Choosing to not sign up for healthcare is an expensive law to break, so if you’re struggling to understand how the Affordable Care Act applies to you and your family, contact Employee Benefit Design today. We can help walk you through the complicated details to ensure you understand your options for health insurance in Springfield, MO.
Are you a business owner? Read our blog about What the Affordable Care Act Means for Your Business.