Is There A Penalty For No Health Insurance?
One of the most important things people consider having in their life is health insurance. With a health insurance policy one can get the treatments medications that they need without having to worry about the exorbitant fees that come with it. However not every individual has health insurance. Some may not be able to afford it while others simply choose not to enroll for a policy. But what happens to people who don’t have health insurance? Is there a penalty for not having one? Let’s find out.
What is the Individual Mandate?
The individual mandate refers to the requirement that every citizen or resident of the United States must have health coverage or face a penalty. This mandate was created as part of the Affordable Care Act also known as Obamacare. The idea behind this mandate was to incentivize people to get health insurance so that they wouldn’t have to rely on emergency rooms for medical treatment.
Penalties for Not Having Health Insurance
Before 2019 people who didn’t have health insurance faced a penalty when they filed their taxes. The penalty varied depending on your income family size. For instance in 2018 the penalty was either 2.5% of your household income or $695 per adult $347.50 per child up to a maximum of $2085. However the penalty was eliminated starting in 2019 meaning individuals no longer face a penalty if they don’t have health insurance.
The Importance of Having Health Insurance
Although there is no longer a penalty for not having health insurance it is still important to have it. Health insurance provides access to medical care when you need it most. It can help you pay for preventive care such as screenings vaccines as well as emergency care hospitalization. Without health insurance you may find yourself struggling to pay for medical bills out of pocket or without access to necessary care.
While there is no longer a penalty for not having health insurance it is still important to enroll in a policy. Without health insurance you may find yourself struggling to access necessary medical care or paying for emergency room visits out of pocket. However if you don’t have health insurance for any reason you won’t be penalized for it.
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