From the Desk of Bob McNett…..
The penalty for not buying health insurance will rise in 2016. It is much more than for 2015. The penalty for 2016 for not being covered on an Affordable Care Act-compliant plan increases to $695 per adult, plus $347.50 per child, or 2.5% if income, whichever is higher. That compares to $347.50 per adult and $162.50 per child, or 2% of income, whichever is higher, for 2015.
The penalty is meant to serve as an incentive to enroll in coverage and a disincentive to leave the marketplace.
However, according to a Kaiser Family Foundation poll, only 15% of the uninsured are aware of when the open enrollment period is for obtaining health insurance coverage (November 1, 2015 to January 31, 2016.)
Whether the higher penalty for 2016 will cause more people to buy health insurance is dependent on how knowledgeable people are about the law. Since we have already been through two years of penalties, one would think most people would be aware of how this fee can greatly reduce a tax refund or cause them to actually owe additional tax.
We are now in open enrollment. Those folks who need to obtain health insurance or make changes in their current plans for individual health insurance need to start looking now.
Robert K. McNett, LUTCF
The McNett Agency
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Toll Free 1 866 497 7119