Penalties for Indivuduals that do not get Health Insurance

The Department of Treasury released their final guidelines on Individual Mandate of the Affordable Care Act (ACA).  This act mandates that everyone has healthcare coverage or they will face a penalty starting in 2014.

The penalty will start at the greater of $95 per person or 1% of taxable income in 2014, and it will increase to the greater of $695 per person or 2.5% of taxable income by 2016. After 2016 the amount of the penalty will be adjusted for cost-of-living increases.  Certain individuals will be exempt from this act including individuals with religious objections, financial hardships, lack of access to coverage, or if the individual has to pay more than 8% of their total household income.  As a result, many older individuals who don’t qualify for subsidized coverage may be exempt from the mandate because of higher premiums that apply to them.

While the penalty is far less than the cost of coverage, paying the penalty will leave you without insurance coverage.  Now is the time to contact Koehler, Koehler, Inc. and find out how to get coverage and how much it is going to cost you.

If you are ambitious and would like to read the final 75 page report on the mandate, please click here.