What is a Penalty for not Having Health Insurance?

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People, who can’t afford to purchase health insurance or can but don’t do it, might wonder whether they have to pay any penalty. The answer is – yes, every person, who doesn’t apply for health coverage, has to pay a penalty or shared responsibility payment as it is called sometimes. Since 2014, a person, either adult or child, who hasn’t got any financial difficulties, has to pay for insurance refusal.

As it was said before, this law has been approved in 2014 but the size of the payments is rising each year. The penalty for an adult was $325 in 2015 and $162.50 for a child, who is under 18. The penalty for a family is $975 or 2% of the gross income if it’s more than the threshold for filing a tax return ($10,300 for individuals, $13,250 for a head of household and $20,600 for a family of two).

In this year, shared responsibility payment is $695 for a family or 2.5 percent of the revenue. To pay off the sum of money, you have to fulfill the Form 8965.

So, obviously, it’s better to apply for health coverage and avoid paying off a penalty that can greatly hit the pocket.