What Is The Penalty For Not Having Health Insurance?
Health insurance is one important thing any people should have. But then, what is the penalty for not having health insurance? If you are included in the people who do not have it as well, it is very important for you to read all information in this article.
What is the penalty for not having health insurance called?
If a person is having the capability of affording health insurance but chooses not to buy it, it means that there will be some penalty. What is the penalty for not having health insurance called? It often called as individual shared responsibility payment. In other occasions, people also often call the fee as individual mandate, penalty, and even fine.
You will be charged for the fee in any month both you and your spouse do not have qualifying health coverage. However, there are also possibilities that you do not need to pay the fee. You can learn more of this topic under the health coverage exemptions.
What is the penalty for not having health insurance? How to calculate it?
There are two different ways of calculating the penalty.
The first one is by the percentage of the income. It calculated 2.5% from the household income. The maximum charge calculated from this way is total annual premium for the national average price of Bronze plan. The one sold through the Marketplace. This method also means that you will only need to pay the part of your household income in one condition; the charge counted is the amount which is above the annual tax filling requirement.
The second way is by per person. For adult, they need to pay the fee as much as $695 for each. Meanwhile, for every child under 18, the amount of fee need to pay is as many as $347.50. In the total, the maximum fee can reach $2,085. For this method, when one of your families already has health insurance, you do not need to pay the penalty for him or her. In other words, you only need to pay the penalty for them who do not have insurance coverage.
Should an unemployed pay the penalty as well?
Now the question is whether unemployed also need to pay the exact same amount or not. It actually depends on the amount of household income he or she has. If in one case the insurance is not affordable based on the income, there is high chance that he or she will have high chance of getting exemption from the fee.
A tool to help estimating the fee
If you think that following the explanation of the two methods to pay the penalty is not easy to determine the exact amount, there is a simple tool to help you. It is called as the IRS tool. By using this tool, estimating the individual responsibility payment you need to pay will be a piece of cake. We hope this last bit of information will help you understand more on knowing what is the penalty for not having health insurance.