The Open Enrollment period is coming to a close – if you haven’t purchased a health insurance policy yet, you still have time. Enroll prior to January 15th for coverage effective on February 1, 2016. Besides having health insurance because it protects you from large medical bills and covers preventive care costs; The Affordable Care Act (ACA) also provides another incentive to obtain insurance—a penalty for not having coverage.
The ACA’s individual mandate requires most people to have health insurance or pay a penalty tax. The fee for not having medical coverage in 2016 and subsequent years will be whichever of the following two options is higher:
- 2.5 percent of your yearly household income. Only the amount of income above the tax filing threshold—about $10,000 for an individual—is used to calculate the penalty. The maximum penalty is the national average premium for a bronze plan.
- $695 per person ($347.50 per child under 18). The maximum penalty per family using this method is $2,085.
Instead of paying a fee, make your money worthwhile by putting it toward health insurance premiums! Talk to an agent at Gary Thompson Agency today to discuss your options.
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