CPA & Business Advisory Blog

Effects of Health Care Reform on Individuals


The Patient Protection Act, as amended by the House Reconciliation Act, requires individuals not otherwise eligible for Medicaid or Medicare or other government sponsored coverage to maintain minimum essential coverage beginning after 2013. Individuals who fail to maintain minimum essential coverage would be liable for a penalty. The Patient Protection Act uses a formula to calculate the penalty taking into account the taxpayer’s household income and a flat dollar amount.

The Patient Protection Act, as amended by the House Reconciliation Act, imposes a nondeductible flat dollar-amount penalty of $95 per person without minimum essential coverage in 2014. The nondeductible penalty rises to $325 per person without minimum essential coverage in 2015 then to $695 per person without minimum essential coverage in 2016 and is indexed for inflation thereafter.

To read more about this, please click here.

SourceCCH, a Wolters Kluwer business

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