Since open enrollment is now open, it is important to make sure that you sign up for health care coverage. If you do not sign up for coverage during this time, you will not have any health insurance for the upcoming year and will face heavy fines.
The fines for not having health care coverage in 2015 are much more expensive than the fines of not having coverage in 2014. If you do not sign up for coverage during open enrollment, you will have to pay 2 percent of your yearly household income or $325 per adult and $162.50 per child under 18 in your household for the year, whichever amount is higher. This amount is higher than the 1 percent of your yearly household income or $95 per adult and $47.50 per child for the 2014 penalty.
Keep in mind that the 2 percent penalty of your yearly household income, only the amount of your income that is above the tax filing threshold, or about $10,000 for a single person, is used to figure out the fine. The maximum amount of the 2 percent penalty is the national average premium for a bronze level health care plan. The maximum amount per family using the second flat rate is $975 per year.
For 2016, the penalty increases again, up to 2.5 percent of your yearly household income or $695 per person.
The health insurance coverage penalty will come out of your federal income tax return that you file for the year. For 2015, most people will file their return early in 2016.
For more information on open enrollment and your health insurance choices, contact Sackett & Associates Insurance Services in Santa Rosa, California. We will help you find the right policy that will fit all of your needs.