Health Insurance
Why Choose Individual Health Insurance
- 1. Alternate to electing COBRA
- 2. Currently between jobs and not covered by employer
- 3. No covered by your spouse’s plan
- 4. In the process of starting a new business
What is Individual Mandate?
Individual Mandate is a law that requires most people to have “minimum essential coverage” health insurance. Starting in 2014, most individuals must have had health insurance for themselves and their dependents that meets minimum standards of coverage. If coverage was not obtained, those individuals would have to pay an annual penalty when filing tax returns.
Why Have the Individual Mandate?
- 1. To keep hospitals and taxpayers from being stuck with the bills of those who are uninsured and require urgent care.
- 2. To protect people from very high medical costs and possible bankruptcy that can stem from having serious medical issues while uninsured.
- 3. To increase the risk pool, ensuring the insurance companies will have enough healthy people buying coverage to cover the high costs of sick people who require a lot of care.
Why Choose Individual Health Insurance
Where to Get Coverage?
You may be able to obtain minimum essential coverage through
- Your employer – sponsored group health plan
- Your parent’s, spouse’s or domestic partner’s plan
- Health Insurance Marketplaces
- COBRA and state-sponsored programs
- Medicaid or other state programs
Why Choose Individual Health Insurance
Maryland Residents Click Above to Enroll
How Much Is the Tax Penalty?
The annual tax penalty for not having minimum essential coverage depends on the age and number of depends in your household, and increases with inflation. The penalty will be the greater of a flat dollar amount per individual or a percentage of the individual’s taxable income. There is an overall penalty cap for families that is equal to the national average premium of a bronze level plan.
How Will the Penalty Be Enforced?
If you do not maintain minimum essential coverage in 2014 or beyond, and you don’t quality for an exemption, you will need to pay a “shared responsibility payment” to the IRS beginning with your 2014 tax return.
The penalty will be pro-rated based on the number of months during the year that you’re uninsured, although those who are uninsured for less than three months in a given year would not be subject to the penalty.
If you do not or cannot make a shared responsibility payment at the time you file your taxes, the IRS may withhold all or part of any tax refund you may be due.
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