What is the health insurance penalty?
In the year 2019, the Health Insurance Penalty was eliminated. Donald Trump and congress eliminated the penalty. The last day of 2018 was the last time that the law was active. That said, people who were uninsured in 2018 will still have to pay the penalty. According to the ACA, or Affordable Care Act, if a person did not get health insurance, they would have to pay the penalty when tax time came around. There were ways to get valid exemptions. If you do/did not have an exemption or a qualifying plan, the penalty for 2018 is still in place, though no additional penalties for the years 2019 and after will be assessed.
Remember that some people chose to purchase plans that did not meet the minimum requirements put for by the ACA. Also, people that were uninsured for no longer than three consecutive months in a year that had the penalty as law could also be exempt from the fine. Other exemptions to the law included people who are part of an American-Indian tribe that is federally recognized. People on a plan that is grandfathered, or are enrolled in an HCSM, or Health Care Sharing Ministry can also be exempt.
What Is The Health Insurance Penalty?
The penalty for not having health insurance during these years increases each year a person did not have health insurance. The penalty in 2015 could not be more than $325 per adult. The per-child penalty that year could not be more than $162.50. The penalty cannot be more than two percent of your total taxable household income either, minus the federal tax-filing threshold. This threshold is the minimum income required by the Internal Revenue Service for a person to need to file a tax return.
In the following year, 2016, the penalties went up. People without qualifying health insurance that year had a penalty of 2.5% of their total taxable household income minus the filing threshold, or $695 per adult and 347.50 per child, whichever was greater.
For both of the years 2017 and 2018, the penalties changed slightly again. People without qualifying health insurance that year had a penalty of 2.5% of their total taxable household income minus the filing threshold, or $695 per adult and 347.50 per child plus the Cost of Living Adjustment (COLA), whichever was greater.
For the year 2019, there was no penalty.
What Are My Options For Complying With Obamacare?
Some healthcare plans comply with the ACA laws, and some do not. There are also a few situations in which case a penalty was given.
First, some people choose to get no insurance and instead pay the penalty when it is tax time. Others also choose to get a healthcare plan that covers some or all of their needs but does not comply with Obamacare requirements. These people will also pay the penalty when tax time comes.
Many people choose to enroll in a qualified plan. More people than ever have health insurance, and the ACA is a part of the reason why. There are plenty of plans on this site that qualify, and you can get free health insurance quotes on this site. By having a qualifying plan, you could avoid the fines and penalties.
There were also a few ways a person could be exempt from getting a plan, including enrolling in the Health Care Sharing Plan, also called the HCSP. These plans may give you an option that has lower rates and premiums than a traditional health insurance plan.
Regardless of which option you choose, remember that having healthcare is essential. This is true even when you are healthy. Unexpected medical bills can arise and be quite costly without the financial protection a health insurance plan provides. Don’t risk an empty bank account; get an insurance plan.
How Can I Avoid An Obamacare Tax Penalty In 2019?
There are three times a person can get or change their insurance policy. The first is during their initial enrollment period. This when a person first qualifies for their own insurance plan. The second is during the annual enrollment period. This is when most people get or change their plans.
In some cases, a person may also get a special enrollment period. Knowing that you have specific windows to get plans is important, especially since you will have to wait until your next enrollment period to get coverage if you decline. Not only that, but you will also have to pay the penalty for these situations, had they happened between 2015 and 2018.