Not only is the Affordable Care Act (ACA) confusing for many Americans, it is especially so for those who will have to worry about the penalties associated with it.
For many, they are unaware if they will have to pay these penalties. If it is the case that you and your dependents do not have minimum essential coverage and your coverage does not meet the ACA’s individual requirement, there is a possibility that you may be exempt. Here are the following groups and categories that are exempt:
- Individuals who have coverage through their employers, and those who purchased coverage by the ACA’s deadline.
- Individuals who found the cheapest plan available to them was over 8 percent of their income, individuals with an annual household income below $10,150, and individuals who face other economic hardships.
- Individuals who are Native Americans and non-US citizens.
- Individuals who are part of a federally recognized religious group in which their religious beliefs clash with the ACA’s provisions.
- Individuals who are members of a federally recognized healthcare-sharing ministry.
Individuals who are subject to penalties include the following:
- Individuals who have gone three consecutive months without healthcare coverage.
- Individuals who only had insurance for part of the year.
There have been many questions as to how much the penalties will be for those individuals who will be penalized for not having the proper healthcare coverage. This year, without coverage, individuals will owe the highest of the following:
- 1 percent of annual household income
- $95 per uninsured adult annually
- $47.50 for children under 18, and up to the maximum of $285 for families.
In the event that an individual does not pay one of the above listed penalties, the IRS will not press criminal charges or get property liens since the ACA does not include measures for penalty collection.
For help with your healthcare coverage needs or any questions in regards to the Affordable Care Act, contact Brazelton Insurance Group today.