Although skipping out on buying appropriate health insurance for you and your family is never an advisable route to follow, it’s not uncommon for people to try to cut corners by omitting the expense of adequate insurance coverage. There’s no denying that insurance presents a consistent cost, and if nobody in the family seems to show any sign of illness, it can be tempting to try and dodge this financial commitment.
However, if you’re doing this for the sake of saving money rather than for the reason of not being able to afford it, you’ll still end up having to pay a sum – and you’ll remain without the best healthcare plan for you and/or your family’s needs, leaving you exposed to an even greater financial impact in the event of a sudden illness. Commonly referred to as the individual shared responsibility payment, this fee is due for any months during which you, your spouse or any dependents fail to have qualifying health coverage or ‘minimum essential coverage.’
By examining the details on your federal tax return, the state can identify whether or not you have coverage, and accordingly issue you with your payment (or, ‘penalty,’ ‘fine’ or ‘individual mandate,’ as it is otherwise known). Before it gets to this stage, it is often well worth seeking the advice of a knowledgeable health insurance provider when it comes to establishing the best healthcare plan for your needs and budget, allowing you to stay clear of this fine and keep you financially secure in the event of a health issue.
Other than actually obtaining insurance coverage, there are also several health coverage exemptions that allow you to avoid paying this fee, which tend to range around significant life events, financial status and group membership. However, if you don’t fit into any of these categories and still find yourself the victim of the fine, here’s what you can expect:
Calculating your fee
To establish how much you must pay as your fee, two different amounts are calculated: 2.5% of your household income, and an amount created by charging a certain amount per person ($695 per adult, $347.50 per child under 18). Whichever amount comes out as higher is the one that you shall have to pay. It’s worth noting that maximum amounts apply, as the first total can only reach the national average price of a Bronze healthcare plan, and the second is limited to around $2,000. With the per-person strategy, only those in the household who aren’t covered by a healthcare plan contribute to the total. The fee is due along with your federal tax return for the year.
If you have healthcare insurance for a part of the year, then the fee is only calculated for the months that aren’t covered, according to a monthly rate (one-twelfth of the yearly amount). ‘Short gap’ exemptions also apply, which take into account those who are only left uncovered for one or two months and can be claimed by filling out a form and including it with your tax return.
While this fee might seem like an excessive measure, it sends home the importance of having an adequate healthcare insurance plan for you and your family. By prioritizing the widespread use of adequate health coverage and by taking into consideration those who are unable to afford health insurance, it ultimately stands out as a fair measure that seeks to improve the physical and financial security of the general population. With a suitable insurance plan available for every budget, there has never been a better time to stop yourself from getting caught out by this fee; get your free quote today from BuyHealthInsurance.com today, with a variety of plans and a wealth of expertise at your service.