IRS Finalizes Penalty for Not Buying Insurance

The Internal Revenue Service has issued final regulations concerning individual penalties for not purchasing insurance coverage under the Patient Protection and Affordable Care Act.

The PPACA's individual mandate — which goes into effect Jan. 1, 2014 — requires individuals who do not have insurance coverage to pay a fine. According to the final IRS rules, people are considered to have met minimum essential coverage requirements for a calendar month if they're enrolled in or covered by a health plan for at least one day of that month.

Those who don't have minimum essential coverage in 2014 will have to pay a fine of $95 or 1 percent of their household income, whichever amount is larger. The fine increases to $325 for each uninsured adult or 2 percent of household income in 2015. The penalty will be $695 per person or 2.5 percent of household income in 2016.

Some groups are exempt from having to pay a penalty, such as people who are temporarily uninsured between jobs, those who oppose health insurance for religious reasons and members of Native American tribes.

The individual mandate has been a source of controversy since the PPACA became law. Earlier this month, Senate Minority Leader Mitch McConnell (R-Ky.) asked for unanimous consent to pass the Fairness for American Families Act, which would delay the mandate from going into effect until 2015. Senate Majority Leader Harry Reid (D-Nev.) rejected the request.

More Articles on the Individual Mandate:
Sen. Reid Objects to Delaying PPACA Individual Mandate
In Symbolic Vote, House Votes to Delay PPACA Individual and Employer Mandates
Health Insurers Push HHS for Stiffer Immediate Penalties on Individual Mandate 

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