Having a health insurance is a thing which every one wants to have. Why? Because it can be considered as a preventive action for some thing which comes in the future. Because of it, it can lighten our burden. However, there are some people who do not buy a health insurance. In this case, they don’t buy an insurance because they think they can pay it by themselves. But, did you know that there is Penalty For No Health Insurance? There is a tax which you have to pay. If you have no idea about it, we are going to share you some information about this issue.
Here, there is a Penalty For No Health Insurance which is waiting for those who do not have a health insurance. This means, you have to pay the cost which can be calculated higher than a health insurance. Besides, it is not good if you ignore this problem.
Who will pay the Penalty For No Health Insurance?
There is a case which we can learn about. Here, you will pay the penalty for the year you have no health insurance. It doesn’t mean that there is no exact time in this case, but the point is if you go more than three months (full). On the other hand, you will be considered to have a health insurance, even if you have only a day in a month – with health insurance.
For clear example, you have no health insurance for two months – which are January and February. Then, the next month you buy a health insurance. In this case, you will not be charged by a haelth penalty because you haven’t passed the three months policy. So, the point is, do not ever pass three months for not having a health insurance.
How about the cost of Penalty For No Health Insurance?
There are two methods which are usually used to calculate the cost of health penalty that you must pay. The first method is the percentage of the total household which is adjusted with gross income. Another method is the flat rate. However, there is a thing that you have to know that which one is greater, will be chosen as the method for calculating the cost you must pay. So, if the percentage of the total household is greater, this thing will be chosen.
For the tax penalty in 2017, the percentage of penalty which has been determined is 2.5% from the total household you have. Again, it is adjusted by looking at the gross income. For the exact amount, it will be around $695 for adult, then around $347 for child. Here, the maximum amount which is calculated, can reach $2,085. For the tax penalty in 2018 and the years after, the amount of health penalty which you must pay, still haven’t been announced. However, there is a possibility that the amount will increase.
Is there any exemption from this kind of penalty?
Yes, of course. There is no Penalty For No Health Insurance if you are qualified of the ACA’s exemption. Here, you will not pay the penalty if you are uninsured for not more than three months, Native American, in prison, abroad, belong to the health care which is under the ministry, etc.