Calculate Penalty for Not Having Health Insurance 2018

In 2018, the Affordable Care Act (ACA) imposed penalties for individuals and families who did not have qualifying health insurance coverage. This calculator helps you determine the penalty amount based on your income and household size.

What Is the Penalty for Not Having Health Insurance in 2018?

The Affordable Care Act established a shared responsibility provision that requires most individuals to have qualifying health insurance coverage or pay a penalty. In 2018, the penalty was calculated as a percentage of the federal poverty level (FPL).

The penalty was $695 per adult and $347.50 per child in 2018, with a maximum penalty of $2,085 per family.

The penalty was based on your income relative to the federal poverty level. If your income was below a certain threshold, you were exempt from the penalty. The penalty was also waived for individuals who had a hardship exemption or who were incarcerated.

How to Calculate the Penalty

The penalty was calculated using the following formula:

Penalty = (Base Penalty × Household Size) + (Child Penalty × Number of Children)

Where:

Base Penalty = $695 per adult
Child Penalty = $347.50 per child
Household Size = Total number of people in your household
Number of Children = Number of children in your household

The maximum penalty for a family was $2,085. If your calculated penalty exceeded this amount, you would pay the maximum penalty instead.

Who Is Affected by the Penalty?

The penalty applied to most individuals and families who did not have qualifying health insurance coverage. The penalty was not imposed on:

Individuals under age 18
Individuals who were incarcerated
Individuals who had a hardship exemption
Individuals who had a religious exemption
Individuals who were enrolled in Medicare

In addition, individuals with incomes below a certain threshold were exempt from the penalty. The income threshold was based on the federal poverty level.

How to Avoid the Penalty

There were several ways to avoid the penalty:

Obtain qualifying health insurance coverage - Enroll in a qualified health plan through the Health Insurance Marketplace, an employer, or another source.
Apply for a hardship exemption - If you could not afford coverage due to financial hardship, you could apply for an exemption.
Apply for a religious exemption - If you had sincerely held religious beliefs that opposed all health insurance, you could apply for an exemption.
Meet the income threshold - If your income was below a certain threshold, you were exempt from the penalty.

It was important to understand the requirements and deadlines for enrolling in coverage or applying for an exemption.

Example Calculation

Let's calculate the penalty for a family of four with two children:

Penalty = ($695 × 4) + ($347.50 × 2) = $2,780 + $695 = $3,475

However, since the maximum penalty was $2,085, the family would pay $2,085 instead.

This example shows how the penalty could be calculated and how the maximum penalty limit applied.

Frequently Asked Questions

What was the penalty for not having health insurance in 2018?

The penalty was $695 per adult and $347.50 per child in 2018, with a maximum penalty of $2,085 per family.

Who was exempt from the penalty?

Individuals under age 18, incarcerated individuals, individuals with a hardship exemption, individuals with a religious exemption, and individuals enrolled in Medicare were exempt from the penalty.

How was the penalty calculated?

The penalty was calculated as ($695 × household size) + ($347.50 × number of children), with a maximum penalty of $2,085.

How could I avoid the penalty?

You could avoid the penalty by obtaining qualifying health insurance coverage, applying for a hardship exemption, applying for a religious exemption, or meeting the income threshold.