Affordable Care Act: The Penalties
Lynchburg, VA - One of the priorities for many Americans in this New Year will be signing up for health care coverage.
This is only for people who do not have an exemption.
If you already have a qualified health insurance plan through your employer, you do not need to apply for coverage under the Affordable Care Act.
The penalties start small.
In 2014, the penalty is $95 per adult and $47.50 per child, or one percent of family income, whichever is greater.
For example, for a family of three, two adults and a child, the penalty $237.50: $95 + $95 +47.50.
Income plays a role, too.
If that family's household income is above $23,750, they'd pay more.
At $40,000 a year, the penalty is $400 in the first year.
"And then each year it will increase: $325 per adult, for example, in 2015, or two percent of your income. And then for 2016, $625 per adult or 2.5 percent of the income and then additional for the children, so it does increase each year," said Certified Healthcare Navigator Amber Poron.
Keep in mind you'll be responsible for paying 100% of any hospital bills, so even a minor procedure could really make a difference in your bottom line.