The cost of not getting covered
Written by Katie Carpenter
Dec 9, 2013 4:49 PM
Not having medical coverage means that you'll have to pay for the entire cost of all your medical care.
And remember- there’s a cost to NOT getting covered. In 2014, the penalty is $95 or 1% of your yearly household income – whichever is greater.
Insurance broker John DiVito at Flexible benefit, a Chicago-based insurance wholesaler, advises to calculate the Obamacare penalty before foregoing coverage. Here's why.
More on the penalty for not having health insurance in 2014:
- If you're already covered through your employer, Medicaid, Medicare, or a private provider, you won't face a penalty.
- If you're uninsured, open enrollment to purchase plans at health insurance exchanges (HealthCare.gov in APA) ends on March 31, 2014.
- If you don't plan on purchasing a plan before that March 31, 2014 deadline, you can use this penalty calculator created by Turbo Tax, to help estimate how much your penalty will be for 2014.
- The health care reform tax penalty is based on your family size and income.
- There is no penalty for a gap in coverage less than three months within a single year.
- Coverage is assessed on a monthly basis or prorated, so you can expect to pay for a portion of the total penalty for the months that you are not covered.
- The penalty for not having coverage is set to increase each year.