As the Open Enrollment Period for 2016 nears its end, it seems like a good time to review the tax individuals will pay if they do not have health insurance coverage.Increased for 2016, the penalty is the greater of:
- A flat dollar amount; $695 per adult plus $347.50 per child, not to exceed $2,085 per family.
- 2.5% of family income.The penalty can be no more than the national average premium for a bronze plan (the minimum coverage available in the individual insurance market under the ACA), which was $2,484 in 2015 for single coverage and $12,420 for a family of three or more children.
Note that the penalty is pro-rated for people who are uninsured for a portion of the year and waived for people who have a period without insurance of less than three months.
Oh, and don’t forget the obvious. Beyond this tax, there’s the penalty for a trip to the hospital when you have no insurance.
It’s called bankruptcy.