Health Care Reform and You:
What insurance coverage do you have?
Since January 1, 2014, most of us will be required to have health insurance for ourselves and our dependents, or face financial penalties. Below is a quick look at what it could mean for you.
Do any of the following apply to you?
- Health insurance coverage would cost more than 8 percent of your income
- Undocumented immigrant
- Income is below the tax filing threshold (1)
- Have health care coverage gaps of less than three months in a year
- Member of an Indian tribe
- Have suffered a hardship (2)
- Meet religious objection requirements
- Member of a health care sharing ministry
You may not be required to have coverage and may not have to pay a tax penalty.
Do you currently have health care coverage, or expect to have it by
January 1, 2014, through one of the following?
- Employer-sponsored health care (including COBRA and retiree coverage)
- Coverage purchased in the individual market
- Medicare Part A
- Children’s Health Insurance Program (CHIP)
- Certain types of veterans health care
You may have to pay a tax penalty for not having health insurance.
The penalty is prorated by the number of months without coverage, though there is no penalty for a single gap in coverage of less than three months in a year. The penalty cannot be greater than the national average premium for Bronze-level coverage in a health insurance exchange.
This information is a high-level summary and for general informational purposes only. The information is not comprehensive and does not constitute legal, tax, compliance or other advice or guidance. See IRS Tax Information on ACA in drop-down menu at top left.