Individual Shared Responsibility Provision  –   Mandate

Starting in 2014, the Individual Shared Responsibility provision calls for each individual to either have minimum essential coverage for each month, qualify for an exemption, or make a payment when filing his or her federal income tax return. On Aug. 27, 2013, the Department of the Treasury and the IRS issued final regulations on the Individual Shared Responsibility provision. On Jan. 23, 2014, the Department of the Treasury and the IRS issued proposed regulations addressing several issues that were identified in the preamble to the final regulations. In particular, the proposed regulations provide that certain limited-benefit Medicaid and TRICARE coverage is not minimum essential coverage. The proposed regulations also address the treatment of health reimbursement arrangements and wellness program incentives for purposes of determining the exemption for individuals who cannot afford employer-sponsored coverage. Comments are due April 28, 2014, and may be submitted electronically, by mail or hand delivered to the IRS. Additionally, because individuals may not be aware that these limited-benefit government health programs are not minimum essential coverage at the time of enrollment, Notice 2014-10, issued on Jan. 23, 2014, provides transition relief from the shared responsibility payment for months in 2014 in which individuals have certain Medicaid coverage or limited-benefit coverage under chapter 55 of title 10, U.S.C. For additional information on the Individual Shared Responsibility provision, the final regulations and Notice 2013-42, see our ISRP page and questions and answers. Additional information on exemptions and minimum essential coverage is available in final regulations issued by the U.S. Department of Health & Human Services. The open enrollment period to purchase health insurance coverage for 2014 through the Health Insurance Marketplace runs from Oct. 1, 2013, through March 31, 2014.

Congressional Budget office explanation

individuals (and their dependents) whose household income is less than the filing threshold for federal income taxes for the applicable tax year will not be subject to a penalty, as well as those whose required contribution for self-only coverage for a calendar year exceeds 8% of household income Congressional Research Service 8.2011       In September 2012, the Congressional Budget Office estimated that nearly six million will pay the penalty in 2016.[164][165]  Wikipedia

26 CFR Parts 1 & 602 Final Regulations – Shared Responsibility Payment – Fine for not maintaining Minimum Essential Health Insurance

IRS 6055 and 6056 Reporting Requirements

Towers Watson Guidance

Kaiser Family Foundation

Copyrighted – Section on Individual Mandate
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No insurance but paid the penalty

Historical

PPACA (Health Reform) allows many options for you or your employer to purchase Insurance with FREE no obligation quotesPPACA and existing law gives both you (subsidies) and your employer tax credits and deductions to do so.  We have searched and located many tools to help you to determine the Individual credit – subsidy if you purchase on your own, through the exchange, the credit your employer gets, if the average wage is below $50k, your employer’s tax deduction under IRC 106 and that the premiums are not taxable income to you.  This is the same as it’s been for years.

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