Oregon HealthCare.gov

Most people must have basic (minimum essential) coverage or pay a penalty.

Who is not required to have health insurance?

  • Individuals and families with incomes that do not require them to file federal income tax returns
  • People who would have to pay more than 8 percent of family income for insurance after taking premium tax credits and employer contributions into account
  • People who are incarcerated
  • Undocumented immigrants
  • Members of federally recognized American Indian or Alaska Native tribes
  • People who do not obtain coverage because they belong to religious groups that object to insurance coverage, who belong to a health care sharing ministry, or who qualify for a hardship exemption

To learn more about exemptions, visit HealthCare.gov.

What happens if I do not have insurance?

Many people who can afford health insurance but decide not to buy it will owe penalties when they file their taxes. You will not owe a penalty if you are uninsured for less than three months.

What are the penalties?

The penalty grows each year as follows:

  • 2014: The greater of $95 per adult or 1 percent of taxable income above the filing limit. (The filing limit refers to the fact that federal income taxes are due from people who earn more than a threshold amount; the penalty is calculated on the amount above the threshold.)
  • 2015: The greater of $325 per adult or 2 percent of taxable income above the filing limit.
  • 2016: The greater of $695 per adult or 2.5 percent of taxable income above the filing limit.
  • After 2016: The tax penalty increases annually based on a cost-of-living adjustment.
  • Children: The penalty for a child is half that of an adult. Only the first two children are counted in calculating the penalty.

What happens if I do not pay the penalty?

  • You may be without coverage for up to three months without triggering the penalty. After that, you pay the penalty for any month that you are not covered.
  • If you are required to pay a penalty but do not, the IRS will send you a notice. If you do not pay the penalty, the IRS can reduce the amount of a future tax refund. Learn more at irs.gov.
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