Penalty For Not Having Health Insurance More Than Doubles in 2016

The penalty for not having health insurance is going up substantially in 2016, just as was promised when the new requirement was implemented in 2014, more than twice the penalty for 2015.

It's no secret that America's health care system is badly broken, damaged by years of abuse, fraud, and mismanagement. We are now entering  year three of the Obama Administration's plan to get health care for everyone - whether they want it or not - and the system is still badly in need of repair.

In 2014, the first year of the plan, the penalty for not having health insurance was just $95, or $47.50 per child under the age of 18. For 2015, the penalty went up to $325 per person, and $162.50 per child under the age of 18.

For 2016, the penalty increases to $695 per person, and 347.50 per child under the age of 18, or 2.5% of your yearly household income. (The only amount of income used to calculate the penalty is the tax filing threshold - about $10,150.)

Most people who have health insurance will pay more than  $695 in premiums for the year, so in that regard it could cost you less out of your pocket to not have insurance -- unless you experience a health-related event that could cost  you way more than the $695 you will pay for not having insurance.

Two important dates to keep in mind are November 1- the first day you can enroll in a health insurance plan for 2016, and December 15 - the last day you can enroll or change your plan for 2016.

Most would agree it makes a lot of sense to have some sort of health insurance coverage, but the fact is, not everybody can afford it. The health insurance mandate is intended to regulate those who can afford insurance, but choose not to carry it.

There are exemptions to the health insurance requirement including hardship exemptions, and plans that may qualify as "minimum essential plans."

Everyone has to make a decision on health care based upon their own unique situation and financial capabilities. But, just know, that if  you choose not to have health insurance for your family, it's likely you will face the government imposed penalty.

[HEALTHCARE.GOV]