The Cost Of Not Having Health Insurance Coverage In 2014 – Know Your Limits

People in America tend to stick to their health insurance plans, paying for the same coverage, even if that means missing out a greater deal. While some people are too lazy to upgrade their health insurance plans, there are some others who don’t care to have health insurance coverage. But with the Obamacare, everyone is required to have minimum coverage on their health insurance policies. Are you aware of the costs of not having health insurance coverage in 2014? If answered no, you have definitely some information to gather from the concerns of this article. Read on.

What if you don’t have health insurance coverage in 2014?

Well, yes, this is the truth that if you don’t have health care coverage in 2014, you may have to pay a fee for your entire health care. This fee might be termed as penalty fee, individual responsibility payment or even as fine. Have a look at the fee that you might be subject to if you don’t have health insurance coverage.

2014 fees and beyond: The penalty that you have to pay in 2014 is usually calculated in either of the 2 ways. If neither you nor your dependents have insurance that is actually the minimum essential coverage, you have to pay whichever amount is higher:

  • 1% of your total household income: The income above the tax-filing threshold $10,150 for a person is used to determine the penalty. Or else the maximum penalty can be the national average premium that you pay for a bronze plan.
  • $95 per individual for a particular year – By using this method, the maximum penalty that a family might have to pay is $285. However, the amount is $47.50 per child who is below 18 years of age.

One has to keep in mind that this penalty will increase every year. In the year 2015, it will become 2% of the income or $325 per individual. The next year i.e., 2016, the rate will be 2.5% of the income or $695 per person and later on it will be adjusted due to inflation. In case you remain uninsured for a part of the year, half of the annual penalty will be applicable to every month that you’re uninsured. These fees required to be paid on your 2014 tax return.

What happens if the uninsured needs immediate care?

Since the numbers of people who wish to dodge their health insurance responsibilities are increasing, there’s always a worry about what will happen if the uninsured needs urgent medical care. Well, if there’s someone who needs immediate health coverage, medical care often get expensive and everyone else will pay the price. This is why Obamacare requires everyone who can afford health insurance to get one for themselves and their family members.

All those health plans that aren’t considered as minimum essential coverage won’t qualify as coverage in 2014. If you only have coverage for dental care, worker’s compensation or coverage for some specific disease, you might have to pay the fees.

Jimmy Simond is a founder of Personalfinancetricks.com, he share his immense knowledge of finance in this blog.