Glossary

Beginning in 2014, the ACA requires most individuals to obtain qualifying coverage.  Individuals without employer sponsored coverage will be required to get qualifying coverage through a health insurance exchange, or elsewhere, or pay a penalty.

Penalty Schedule:

1. In 2014: the greater of $95 or 1% of taxable income. Maximum of $285 per household (3 x $95 = 285)
2. In 2015:  the greater of $325 or 2% of taxable income. Maximum of $975.
3. In 2016: the greater of $695 or 2.5% of taxable income. Maximum of $2,085.
4. After 2016:  same as 2016, but adjusted annually for cost of living increases.