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