Insurance is compulsory, no matter its health insurance, car insurance or the insurance of property. People can get exemption in some cases, but in there are rules and regulations and laws for that. If a person qualifies for exemption, only then he can avoid insurance, otherwise if you will not pay your insurance premium, you have to pay the fine or in other words face the penalty.
At the end of year 2017, President of US, Donald trump signed a bill. According to that, people who will not pay their health insurance, will not be paying any penalty. However, it is not effective immediately. Rather, rules will remain the same till the year 2019. In the current year, 2018, people will be paying penalties for no insurance.
For instance, if a person, having family of four people, does not pay his health insurance for a year, he will be paying $ 15,200 as penalty, next year. For the year 2017, the penalty was $695 for each adult. Some others calculate is as 2.5% of the income. For children the rate of penalty is half, as compared to adults, i.e. $347.50. the rates will remain the same this year too.
People can avoid insurance if they have very low income or they belong to the ministry of health care. If you have paid the premium in few months, you can avoid penalties. If you don’t fall in any of these categories, you have to pay the penalty. The tax forms of the US residents should be complete and the insurance related forms like 1095 – B and 1095 – C should be submitted in time to avoid the penalties. W-2 forms are used as a proof that you are having health insurance, wither you are paying it for the insurance or its your employee or the company, who is paying your health insurance. To avoid penalties, you have to complete the formalities and papers.
If you are confused, you can seek the online help. The concerned departments provide all the information on their website and you can call them to get the required information. Important thing is to do things in time. If you will not be able to pay the insurance in time, you will be paying the penalties other than the actual insurance premium and they can cost you a good amount of money. US will have relaxation for the insurance penalties in 2019, but not this year.