Through the year and particularly the fourth quarter, we have talked about what you need to do to position yourself for 2016. I need to let you know what your consequences could look like if you choose to do nothing.

The period of time called “open enrollment” allows you to sign up for insurance in the upcoming year and this runs through January 31, 2016. If you do not choose to have health insurance for 2016, you will be penalized. The penalties are a lot more severe than you might expect.

Some people only read 2.5% of “household income” OR $695 per adult, $347.50 per child under 18 for a maximum of $2,085. “Household income” would include head of household, spouse (whether this be a domestic partner, wife or husband), and dependent children through age 26, if they are being claimed on your income tax. So, we gather all income for your household and we would owe 2.5% per person OR the fixed dollar amount, whichever is greater. I have provided a link for healthcare.gov that lays this out pretty clearly and it also has a toolbar that would give you the ability to estimate your fee for 2016. This will also show the fee schedules starting for 2014 when the individual mandate became part of the Affordable Care Act law.

This is serious business. I’ve also attached a post from Facebook showing what the IRS paperwork could look like if you do nothing. The same dollars for a penalty could be applied to a premium and you would have coverage as well as not having to talk to the IRS. Please call me, my consultations are free!