Penalty for 2014 is 1 percent of total income or $95, whichever is greater
The final deadline to enroll in health insurance inside or outside of MNsure is March 31 for coverage that begins May 1, 2014, and missing that deadline could mean paying a penalty. The penalty for 2014 is 1 percent of total household income or $95, whichever is greater.
“With the March 31 deadline to enroll in health coverage rapidly approaching, I want to remind Minnesotans without health coverage to visit MNsure.org, and enroll to avoid paying a tax penalty,” said MNsure interim CEO Scott Leitz. “Consumers could pay 1 percent of their total taxable income or $95, whichever is greater – and that penalty will increase from year to year. I urge Minnesotans to know the facts and to get covered before March 31.”
The penalty for 2014 is determined by using the greater amount of either:
1 percent of your yearly household income. Only the amount of income above the tax filing threshold, for example $10,150 for an individual, is used to calculate the penalty. For example, an individual whose total taxable income is $50,000 will pay a $400 penalty if they do not enroll in health insurance coverage by March 31.
Or; $95 per person for the year ($47.50 per child under the age of 18), up to a maximum of $285 for a family in 2014.
The penalty is sometimes referred to as a “fine,” an “individual responsibility payment” or an “individual mandate.” All of these terms refer to the same thing.
The next open enrollment period begins Nov. 15, 2014.
More information about MNsure and the health care mandate can be found on the MNsure website at this link: www.mnsure.org/individual-family/mandate/.