On Sunday November 1, health insurance shoppers began picking plans, but for those still weighing whether to get covered, there’s an Obamacare provision even more important to consider than ever before: the individual mandate.
The fee levied on those who go without insurance but who can afford it sharply increases in 2016, a result of a three-year phase-in of the penalty. The higher the fee, health experts say, the likelier it is that consumers will choose to get or stay covered. But there’s a big caveat: It all depends on whether or not uninsured Americans, or those thinking about leaving the exchanges, know about the individual mandate and its steep fee increase.
“The higher it is, obviously the more people we expect will respond to it—part of it is it’s been a process of individuals even recognizing that the mandate was in place,” said Linda Blumberg, senior fellow at the Urban Institute’s Health Policy Center.
The fee for not having health insurance next year won’t be felt until Americans file their federal taxes due April 2017. But it’s much more than in the past: $695 per adult and $347.50 per child, or 2.5 percent of a household’s income—whichever is higher. When taxpayers file their 2015 taxes (due this April), the fee for forgoing insurance will be $325 per adult and $162.50 per child, or 2 percent of household income if the latter figure is higher.
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Contact Steven G. Cosby, MHSA, Group Health Insurance Broker and Agent with Cosby Insurance Group, with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.
