What is the Penalty for Not Having Health Insurance in 2018?

Penalty for Not Having Health Insurance in 2018: What You Need to Know

The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance coverage or face a penalty. The penalty for not having health insurance has been in place since 2014, and it has undergone some changes over the years. In this article, we’ll discuss the penalty for not having health insurance in 2018, who is exempt from the penalty, and what options you have if you don’t have health insurance coverage.

The Penalty for Not Having Health Insurance in 2018

In 2018, the penalty for not having health insurance is calculated in one of two ways – either a percentage of your household income or a flat fee per person in your household. The penalty is whichever is higher.

The percentage of your household income is 2.5%, with a maximum penalty of the national average premium for a bronze level health plan available through the Marketplace. The flat fee per person in your household is $695 per adult and $347.50 per child under 18, with a maximum penalty of $2,085.

It’s important to note that the penalty is prorated, which means you’ll only pay the penalty for the months you or your family members didn’t have health insurance coverage. For example, if you didn’t have coverage for three months, you’ll only pay 25% of the penalty.

Who is Exempt from the Penalty?

There are several exemptions from the penalty for not having health insurance, including:

- Financial hardship

- Religious objections

- Membership in a health care sharing ministry

- Incarceration

- Living abroad for more than one year

- Qualifying for a hardship exemption

If you qualify for an exemption, you won’t have to pay the penalty for not having health insurance.

What Options Do You Have if You Don’t Have Health Insurance Coverage?

If you don’t have health insurance coverage, you still have options to get coverage and avoid paying the penalty. These options include:

- Enrolling in a health plan through the Marketplace during the open enrollment period

- Qualifying for a special enrollment period due to a life event, such as losing your job or having a baby

- Enrolling in Medicaid or the Children’s Health Insurance Program (CHIP) if you meet the eligibility requirements

- Joining a health care sharing ministry

- Purchasing short-term health insurance, which may not meet all of the requirements of the Affordable Care Act

It’s important to note that short-term health insurance plans may not provide the same level of coverage as comprehensive health insurance plans and may not cover pre-existing conditions.

Insurance Planning and Case Studies

As a professional insurance consultant, I would advise you to plan your insurance coverage early to avoid any penalties for not having health insurance. You should also consider purchasing additional insurance coverage to protect your family and your assets.

For example, life insurance can provide financial protection for your family if you were to pass away unexpectedly. Disability insurance can provide income replacement if you’re unable to work due to an injury or illness. And long-term care insurance can help cover the costs of long-term care if you become unable to care for yourself due to aging or illness.

Here’s a case study to illustrate the importance of insurance planning. John is a 45-year-old married father of two. He owns a home and has a mortgage, and he works as a software developer. John’s wife stays at home to take care of their children. John has health insurance through his employer, but he doesn’t have any additional insurance coverage.

One day, John is diagnosed with cancer and has to take time off work to undergo treatment. His health insurance covers most of his medical expenses, but he’s still responsible for his co-pays and deductibles. Without disability insurance, he’s also losing income while he’s unable to work.

John and his family are struggling to make ends meet, and they’re worried about losing their home. If John had purchased disability insurance and life insurance earlier, he would have been able to protect his family’s financial security during this difficult time.

In conclusion, the penalty for not having health insurance in 2018 is calculated based on a percentage of your household income or a flat fee per person in your household. There are exemptions from the penalty, and options to get coverage if you don’t have health insurance. As a professional insurance consultant, I would advise you to plan your insurance coverage early and consider purchasing additional insurance coverage to protect yourself and your family from unexpected events.