Is There Still A Fine For Not Having Health Insurance?

Is there a penalty for not having health insurance in 2020? Read on to find out.

The Affordable Care Act orders that an individual who can bear the cost of a health insurance yet decides not to buy one must face a punishment by paying a penalty known as the individual shared obligation installment. You will owe the expense for any month that you and your wards are without least basic inclusion ordered by the ACA and is paid every year when recording your assessments. This charge is anyway deferred in the event that you are without inclusion for over two months in a specific year.

Having some sort of health insurance is really important or else you might have to pay a fine. However, is there still a penalty for not having health insurance in 2020? At the point when the Affordable Care Act’s (ACA) (also called Obamacare) singular order produced results in 2014, so did the punishment for abandoning medical coverage. As of not long ago, in the event that you didn’t join up with at least a basic inclusion and were not excluded from the command, you could owe a government charge punishment known as the shared obligation installment or  a shared responsibility payment. That is not true anymore.

If you do not have health insurance and are worried that you might have to pay a fine, then be assured that you do not have to pay any fine unless you state’s mandate says otherwise. Read this article to find out more information about whether there is still a fine for not having health insurance or not. So, what are you waiting for? Without much further ado, let us jump right in!

Is there still a fine for not having health insurance?

Ever since 2019 there is no government based punishment for not having medical coverage. However, there are still certain states and locales that have established their own health care coverage commands. The federal charge punishment for not being joined up with medical coverage was disposed of in 2019 due to changes made by the Trump Administration. Therefore, if you do not have health insurance and are worried about paying a fine, do not be stressed out any more. You do NOT have to pay any fine or penalty for not having health insurance in 2020.

The earlier expense punishment for not having medical coverage in 2018 was $695 for adults and $347.50 for youngsters or 2% of your yearly salary, whatever that sum turned out to be. This punishment was intended to shield the individuals from avoiding medical coverage and not having the option to take care of their clinical costs in case of injury or sickness.

There is no punishment for not having an Affordable Care Act health inclusion in 2020 except if you live in a state like New Jersey or Massachusetts where it is commanded by the state. Along these lines, momentary clinical plans will be incredibly mainstream in 2020 on the grounds that they give admittance to bigger PPO networks at lower costs than ACA Bronze plans.

What states require health insurance?

The Individual command law – which expects you to have medical coverage – doesn’t have any federal significance ever since the law was passed in 2019 that no penalties will be charged. While there won’t be any punishments at the government level any longer for going uninsured or picking an arrangement that isn’t covered by ACA, it is quite essential to still try to understand the different state’s necessities for medical coverage. Despite no federal punishments, you must keep in mind that a bunch of states have their own medical coverage punishments which are evaluated when individuals don’t have protection that adheres to the state’s laws.

A few states where a medical coverage punishment is still evaluated:

  • New Jersey: This state has a medical coverage punishment that became effective in 2019. The medical coverage punishment depends on New Jersey’s costs for bronze level health care coverage strategies.
  • Massachusetts: Massachusetts has had a medical coverage punishment since organizing a state health care coverage program in 2006. Before, they didn’t evaluate a medical coverage punishment on the off chance that somebody paid one at the government level. Nonetheless, with the end of the government medical coverage punishment, they will start charging a state expense.
  • Vermont: Vermont has organized a medical coverage punishment for uninsured people in that state. The medical coverage punishment law becomes effective in 2020.
  • District of Columbia: This city has marked their own medical coverage punishment into law. It became effective in 2019.

Massachusetts health insurance penalty 2020

The Massachusetts Health Care Reform Law necessitates that most inhabitants more than 18 who can manage the cost of medical coverage have inclusion for the whole year, or take care of a punishment through their government forms. Punishments include for every month you don’t consent, however there is an effortlessness period that permits slips in inclusion of 3 or less back to back months. You should be selected for medical coverage designs that meet Minimum Creditable Coverage (MCC) necessities. Most grown-ups as of now have medical coverage, maybe through their manager or an administration program, however on the off chance that you don’t, you or your boss can locate the correct health care coverage plan on the web. You may likewise purchase plans through affirmed Massachusetts medical coverage transporters.

Massachusetts has required its inhabitants to have medical coverage or pay a fine since 2006. Massachusetts authorities have said to have arrived at inclusion rates as high as 97.5% in the state, to a limited extent because of the order. In this express, the expense punishment depends on pay level comparable to the Federal Poverty Line (FPL). The FPL is set at a specific salary for each year by the administration. Your qualification for appropriations, and for this situation for a fine, depends on what rate your yearly pay is of the FPL.

Those creation $150 and under of the neediness line the individual duty punishment doesn’t have any significant bearing. For the individuals who make 150.1% to 200% of the FPL, their fine will be proportional to half of the most reduced value Connector Care medical coverage plan. Connector Care is Massachusetts’ medical coverage commercial center. Those creating over 300% of the FPL will be charged a portion of the most reduced evaluated bronze premium (which depends on the costs as of January 1, 2019). Punishments for wedded couples (with or without kids) will rise to the aggregate of the individual penalties for each life partner.

Health insurance penalty exemption

Ever since the beginning of 2019, for which taxes were to be filed by July 15, 2020, the penalty for not having health insurance is no longer in effect. You no longer have to pay the shared responsibility payment or the mandate. Therefore, if you do not have any medical coverage in 2020, you don’t even need a health insurance penalty exemption, because you will be charged with no penalty.

However, some individual states do have a small penalty for not having health insurance. In order to be exempted from your state’s individual penalty, you can get registered in a health insurance plan during the open enrollment period. In the event that you lose your coverage in the year, you may fit the bill for an uncommon enlistment period. Or then again, depending upon which state you live in, you might have the option to register and apply for a short term health care coverage to help fill any inclusion gaps you may face consistently.


So, is there still a fine for not having health insurance? As of the beginning of 2019, the government penalty for not having health insurance was ended. Thus, you can relax if you are uninsured in 2020 because you will not be charged with any federal penalties. However, in order to be safe from your state’s individual mandate taxes, it is better to have some sort of a medical coverage plan.

John Otero

John Otero

John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. He began his insurance career in 2004 as an office assistant at an agency in her hometown of Duluth, MN. He got licensed as a producer while working at that agency and progressed to serve as an office manager. Working in the agency is how he fell in love with the industry. He saw firsthand the good that insurance consumers experienced by having the proper protection. John has diverse experience in corporate & consumer insurance services, across a range of vocations. His specialties include Major Corporate risk management and insurance programs, and Financial Lines He has been instrumental in making his firm as one of the leading organizations in the country in generating sustainable rapid growth of the company while maintaining service excellence to clients.

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