Do I have to buy health insurance? What are the penalties?

Do I have to buy health insurance? What are the penalties for not having health coverage?

There will be penalties for individuals who choose not to get affordable insurance. These penalties are part of the federal law and will be collected by the Internal Revenue Service as part of individual tax filing for 2014. There are no penalties for small employers (fewer than 50 full-time-equivalent employees), but starting in 2015 large employers may be subject to a penalty if they do not offer affordable coverage to their
employees.

In 2014, an individual who does not maintain minimum health coverage will face a penalty of $95 or 1 percent of income, whichever is greater. In 2014, a family will be charged a penalty of $95 per uncovered adult and $47.50 per uncovered child (up to $285 for a family) or 1 percent of the family’s income, whichever is greater. For 2015, the penalty increases to $325 per adult and $162.50 per child (up to $975 for a family) or 2 percent of family income, whichever is greater. For 2016, the penalty is $695 per adult and $374.50 per child (up to $2,085 for a family) or 2.5 percent of family income, whichever is greater.

However, some individuals may be exempt from paying a penalty, including:

* people who would have to pay more than 8 percent of their income for health insurance
* people with incomes below the threshold required for filing taxes (in 2013, $9,750 for a single person and $27,100 for a married couple with two children)
* people who qualify for religious exemptions
* undocumented immigrants
* incarcerated individuals
* members of federally recognized American Indian tribes and Alaska Native

Source: https://www.blueshieldca.com/bsca/documents/about-blue-shield/health-reform/COVEREDCA_FAQs_092413.pdf