Penalties for Individuals
In 2014, Legal U.S. citizens who do not have a minimum amount of health coverage will receive a penalty of $ 95.00 or 1% of their taxable income, whichever is greater.
Penalty Timeline
Penalties will increase each year through 2016. In future years, the penalties will adjust annually.
2014 Greater of $ 95 or 1% of taxable income
2015 Greater of $ 315.00 or 2% of taxable income
2016 Greater of % 695 or 2.5% of taxable income
2017 And beyond – Annual adjustments
Small Group Employers –
Less than 50 employees
Small businesses also can use an exchange to find insurance for their employees. These are call Small Business Health Options Programs or SHOP’s for short. The individual and SHOP exchanges may be separate or combined.
Three options for health insurance in 2014 –
1. Offer a full insured plan through either:
a. A Shop exchange
b. The traditional market
2. Offer an ASP plan, if allowed by state law, where essential health benefits are metal level requirements don’t exist.
3. Stop offering coverage and let employees buy an individual plan on or off the exchange.
