What type of coverage do you need?

The Affordable Care Act requires most individuals to obtain acceptable health insurance coverage for themselves and family members, or they will have to pay a penalty. This rule took effect in 2014 and is often referred to as the individual mandate. The penalty amount that one must pay is capped at the annual national average bronze-plan premium.

On January 16, 2015 The IRS released a revenue procedure which provides the monthly national average premium for bronze level plans.

For 2015 the average premium for the bronze level health plan is:

            · $207 Per individual ($2,484 annually)
            · $1,035 for a family with five or more members ($12,420 annually)

This Revenue Procedure is effective for taxable years ending after Dec 31, 2014.

Beginning in 2014, individuals who did not obtain the minimum essential coverage for one or more months would be liable for a penalty under the individual mandate. The penalty amount is calculated when the individual files their income tax return. The penalty is the greater amount of; a flat dollar amount or a percentage of the individual’s income. The penalty amount that the individual must pay is capped at the national average bronze-plan premium for the size of the individuals family.

So, for each taxable year, the penalty amount is the lesser of the sum of the monthly penalty amounts; or the sum of the monthly national average bronze plan premiums for the shared responsibility family. This cap is based on the annual national average premium for GHPs that:


· Have a bronze level of coverage

· Would provide coverage for the individual’s family members who are liable for a penalty under the individual mandate

· Are offered through the exchange for that plan year


The method used to determine the national average premium amount

· The rating area

· Age

· Tobacco use

· Family size





Health Care Reform Bulletin – Kistler Tiffany Benefits

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