If you still don’t have insurance, it’s important to enroll before open enrollment ends. With the Obamacare Penalty increase, it could be a costly mistake to ignore your last chance to sign up.
When Does Open Enrollment End?
February 15 marks the closing of open enrollment for the 2015 year for the Insurance Marketplace at Healthcare.gov. It’s important to ensure you have qualifying insurance, because the penalty will increase this for 2015 to 2% of your household income or $325 per adult and $162.50 per child, whichever amount is higher.
What is The Penalty for Not Having Insurance?
For reference, as we discussed previously, the 2014 the penalty is 1% or $95 per adult and $47.50 per child, whichever amount is higher.
For the same person who made $14,400 last year and has no dependents, his penalty for 2015 would be $288. What’s more important is that under current laws, the penalty will increase each year:
- 2015: 2% of your household income or $325 flat fee per adult and $162.50 per child, whichever amount is higher.
- 2016: 2.5% of your household income or $695 flat fee per adult and $347.50 per child, whichever amount is higher.
- Beginning in 2017, the years after will be increased at the rate of inflation.
The good news is that depending on your penalty, there is a cap on the amount that you can be penalized. The cap is equivalent to the national average of a bronze-tier health insurance plan for the year. For 2014, the penalty cap is $6,350 for individual plans, and $12,700 for family plans.
If the thought of the ACA and the Marketplace overwhelms you, we’re here to help make the process easier and provide wonderful resources under our Health Care Reform section on The Daily Deduction all year long. If you enjoyed this article or found it helpful, Like us on Facebook and follow us on Twitter to get more articles like this posted directly to your timeline or newsfeed! You can also share this stress-relieving info with your social network or friends by clicking on the share buttons above or below.