The Internal Revenue Service (IRS) has announced that individuals who fail to get health insurance this year will be fined a maximum of $2,448, and families with five or more members could be fined up to $12,240 under the “Shared Responsibility” provisions of the Affordable Care Act.
The Affordable Care Act stipulates that all individuals are required to either obtain health insurance or pay a tax penalty to the IRS, unless the individual is deemed “exempt”. Non-exempt individuals who cannot show evidence of having been insured during 2014 under a health insurance plan that meets the ACA’s minimum standards are fined 1 percent of their annual household income if they make more than $19,650. Individuals with household incomes between $10,150 and $19,650 are fined a flat rate of $95 annually. Individuals making less than $10,150 per year are exempt from paying the fine.
Bronze level plans, which require the beneficiary to cover 40 percent of healthcare costs, meet the minimum requirements to comply with the ACA requirements. Using Bronze level plans to calculate penalty rates, the IRS found that the national monthly average premium for Bronze level plans available through the healthcare exchanges this year is $204 per person.
Therefore, people who did not buy health insurance could be fined up to that amount for every month they lacked insurance, which comes to $2,448 dollars over the course of one year. For most individuals, the actual penalty will be far less than that amount.
As always, ADVOCATE will keep you updated on this and all issues impacting radiology as they become available.
Kirk Reinitz, CPA