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Friday, March 7, 2014

Uninsured Americans Have Until March 31 To Sign Up For Health Care Insurance

For uninsured Americans, March 31 is the last day for open enrollment to sign up for health care insurance. Although other deadlines have been updated, it appears this one is holding fast.

What happens after March 31?

Americans who do not currently have health insurance need to sign up on the open marketplace for insurance, according to the Affordable Care Act. If you miss the deadline, the penalty is $95 per adult and $47.50 per child up to a maximum of $285 per household or 1 percent of income, whichever is greater. This is based on adjusted gross income, after your deductions. So, if your gross income is $40,000 and deductions total $10,000, the one percent penalty would be applied to the adjusted gross of $30,000 and be $300.

If you already have health insurance through an employer plan, or with Medicare or Medicaid, you don't have to worry; you're covered.

How will the fine be applied?

The penalty will be applied when you file your tax return for the year 2014. The purpose of the penalty is to discourage people from waiting until they get sick to purchase health insurance. The penalty only applies to people who do not have health insurance and can afford health insurance.

Penalties will increase each year

If you haven't signed up for health insurance, do so quickly. The penalty increases each year. In 2014, the penalty is 1 percent, in 2015 it will be 2 percent, in 2016 it goes up to 2.5 percent, or $695, whichever is greater.

Now there are 3 things you cannot avoid: death, taxes and penalties for being uninsured.
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