In the previous year, you would have to pay a penalty for not having health insurance. In 2018 the fee was calculated two different ways, a percentage of your household income or per person. The percentage would be 2.5% of household income or $696 per adult and $347.50 per child under 18 years old with a maximum of $2,085. You would pay whichever is higher.
However, now there is no penalty for not having ACA mandated coverage in 2021 unless the state you reside in mandates it. Because of this, short-term medical plans will be extremely popular in 2021 because they provide access to larger PPO networks at lower prices than ACA Bronze plans.
State-level health insurance penalties still may be in effect.
On a federal level, there will not be penalties anymore for going uninsured or choosing a plan that is not ACA-compliant. However, it is still important to look at state requirements for health insurance. A large handful of states have their own health insurance penalties imposed when people do not have insurance that complies with that state’s laws.
Some places where a health insurance penalty is still charged:
- New Jersey. This state has a health insurance penalty that went into effect in 2019. The health insurance penalty is based on New Jersey’s prices for bronze-level health insurance policies.
- Massachusetts has had a health insurance penalty since instituting a state health insurance program in 2006. In the past, they did not assess a health insurance penalty if someone paid one at the federal level. However, by eliminating the federal health insurance penalty, they will begin charging a state fee.
- Vermont has instituted a health insurance penalty for uninsured individuals in that state. The health insurance penalty law went into effect in 2020.
- District of Columbia. This city has signed its own health insurance penalty into law. It went into effect in 2019.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.