How to Steer Clear of Costly Health Insurance Penalties: A Guide for Young Workers

The Affordable Care Act (ACA), also known as Obamacare, aims to ensure that Americans have access to affordable health insurance. While the law has faced its share of challenges, it has also had a significant impact on the lives of many Americans, especially young workers.

The Individual Mandate:

Under the ACA, most Americans are required to have health insurance coverage. This requirement, known as the individual mandate, applies to young workers as well. If you don’t have health insurance, you may have to pay a penalty when you file your taxes.

The penalty amount varies depending on your income and the length of time you are uninsured. In 2023, the penalty is $695 per adult and $347.50 per child under 18, or 2.5% of your household income, whichever is greater.

Exceptions to the Individual Mandate:

There are a few exceptions to the individual mandate. You don’t have to have health insurance if you:

Are under 26 and can be covered by a parent’s health insurance plan.
Are eligible for Medicaid or CHIP.
Have religious objections to health insurance.
Are incarcerated.
Are not a US citizen or legal resident.

Young Workers and the ACA:

The ACA has been a boon for young workers. Before the law was passed, many young people were uninsured because they couldn’t afford it or because they didn’t think they needed it.

How Young Workers Can Avoid Penalties:

If you’re a young worker, there are a few things you can do to avoid paying a penalty for not having health insurance:

Get covered through your employer. Most employers with 50 or more employees are required to offer health insurance to their employees. If your employer offers health insurance, you should sign up for it.
Enroll in a health insurance plan through the Health Insurance Marketplace. If you don’t have health insurance through your employer, you can enroll in a plan through the Health Insurance Marketplace. There are a variety of plans available, and you may be eligible for financial assistance to help pay for your premiums.
Get a waiver. If you meet certain criteria, you can get a waiver from the individual mandate. To get a waiver, you must file Form 8965 with your tax return.

If you’re not sure if you have to have health insurance, or if you have any questions about the ACA, you should contact a licensed insurance agent. They can help you determine if you need coverage and can help you find a plan that meets your needs.