Did you know that it is legal to get health insurance if you can afford it? If you can afford the expenses of health insurance but don’t get it by 2022, you may be charged a cost sometimes known as a “penalty,” “fine,” or “individual mandate” when you file your federal income taxes.
The good news is that cheap coverage is accessible through the Health Insurance Marketplace. After receiving financial assistance, 7 out of 10 consumers can obtain insurance with monthly premiums of less than $75. Your coverage will start on January 1, 2022, if you join before January 15, 2021.
Would you like to see the plans and prices that are available to you before you apply? You can see the plans and rates for 2022 here, and you might be amazed at how affordable health insurance can be.
Taking it apart: the cost
Here are five simple statistics concerning the cost of not having health insurance while you can:
- Depending on your scenario, the cost is determined in one of two ways. It’s either a fixed payment or a percentage of your annual household income for each family member without health insurance. When submitting your federal income taxes, you’ll have to pay the higher of the two amounts if you don’t have insurance for more than three months despite having access to affordable coverage. Learn how to calculate the fee you’ll have to pay if you don’t have health insurance based on your specific circumstances.
- The cost is going up in 2022. In 2021, the penalty for not having health insurance is either $325 per person or 2% of your family’s annual income, whichever is a bit higher. The cost for 2022 is $695 or 2.5% of your yearly income, whichever is greater. That’s higher than the annual cost of health plans found on HealthCare.gov for many people.
- Every month without coverage is a month without coverage. The price is determined by the number of months you and your family went without qualifying health insurance. The higher the charge, up to the maximum, the longer you go without health coverage. (However, if you’re uncovered for only 1 or 2 months, you won’t have to pay anything.)
- Exemptions from the cost are possible for some people. People with meager incomes and those who meet additional criteria may be excused from obtaining health insurance and not be required to pay the cost. See if you qualify for any of the exemptions.
- To avoid the cost, you have until January 15 to enroll in a 2022 plan. The last date to sign up for coverage in 2022 is December 15. In 2022, there will be no Special Enrollment Period around the April 15th tax filing deadline. If you don’t enroll by then, you may have to wait another year for coverage and pay the charge when submitting your 2022 taxes.