If you don’t have health insurance, you should. Health insurance is an important way to make sure we have access to medical care when we need it. Starting in January 2014, most people will be required to have health insurance or pay a penalty if they don’t. Coverage can include employer-provided insurance, coverage you buy on your own, Medicare or Medi-Cal.
The penalty phases in over three years and becomes increasingly severe. In 2014, the penalty will be 1 percent of annual income or $95, whichever is greater. By 2016, the penalty will be 2.5 percent of income or $695. This means that if you do not have coverage in 2014, you will be required to pay a penalty when you file your taxes at the end of the year.
Health Insurance Penalty Phase-In Schedule
Pay the greater of the two amounts
Year Percentage of Income Set Dollar Amount
2014 1% $95
2015 2% $325
2016 2.5% $695
The total penalty for the taxable year will not exceed the national average of the annual premiums of a bronze-level health insurance plan offered through the health insurance marketplaces, like Covered California. Health insurance plans will provide proof of coverage for their customers.
Several groups are exempt from the requirement to obtain coverage or pay the penalty, including:
People who would have to pay more than 8 percent of their income for health insurance
People with incomes below the threshold required for filing taxes (in 2012, $9,750 for a single person and $27,100 for a married couple with two children)
People who qualify for religious exemptions
Undocumented immigrants
People who are incarcerated
Members of Native American tribes
If you do not have insurance and do not fit into one of these categories, then you will likely pay a penalty.
Just Us Insurance is located in Southern California.
We proudly serve businesses and local residents in Corona, Murrieta, and Temecula.
Just Us Insurance operates throughout Riverside, San Bernardino San Diego, and Orange Counties
