President Obama has recently signed the Healthcare Bill into law that would result in important changes to our healthcare system as well as our tax system. Regardless of your opinions, political thoughts and etc – change is coming.
In order to prepare for the change, you must understand the change and plan for it so that it doesn’t surprise you like a “silent but deadly cloud” in an elevator.
Penalty
Beginning in 2014, those who do not have health insurance must pay a penalty or fine of $695 dollars or 2.5% percent of their household income, whichever is greater.
After 2016, the penalties will be increased (or decreased) by annual cost-of-living adjustments (inflation). People will not be required to get coverage if the cheapest plan available costs more than 8% of their income.
The penalties will be collected by the IRS through tax returns. However, the IRS will not have the authority to bring criminal charges or file liens against those who don’t pay.
Massachusetts is a state that has a healthcare penalty. Massachusetts charges a penalty for individuals or families that are not covered by health insurance, unless they’re income is under a 150% of the poverty level.
Conclusion:
Get healthcare by 2014 or pay the fine.