Penalties for not having an Affordable Care Act (ACA) insurance policy will increase in 2015. This is from the IRS. This increase pretty much doubles the penalty from the 2014 calendar year. In 2016 these penalties will increase further. We will inform you sometime next year on this. After 2016 calendar year the penalties will increase according to government stated inflation rates.
Good Neighbor Insurance provides both group and individual health care coverage in Arizona, as well as travel insurance for those vacationing overseas and for expats residing overseas. We are happy to be able to share the following information for our clients who currently have Qualified Health Plans here in Arizona.
For 2014, the tax is the greater of a) 1.0 percent of income (net of specified deductions) or b) $95 per adult plus $47.50 per child, up to a maximum of $285 per family.
However, the penalty is capped at the average cost of a bronze level health plan .
The percentage tax increases to 2 percent in 2015 and 2.5 percent in 2016 and later years.
The dollar penalty rises to $325 per adult plus $162.50 per child (with a family maximum of $975) in 2015; increases to $695 per adult plus $347.50 per child (with a family maximum of $2,085) in 2016; and is indexed for inflation in subsequent years.
In each year, the penalty is capped at the national average premium for bronze level insurance plans.
That average premium is projected to be: 2014: $3,600 per adult plus $1,900 per child 2015: $3,816 per adult plus $2,014 per child 2016: $4,045 per adult plus $2,135 per child.
