The “fee” is the individual mandate penalty for not having ACA compliant coverage. It is accessed annually but not necessarily a $695 flat fee. It is calculated in 2 different ways – as a percentage of your household income, and per person. You’ll pay whichever is higher.
Percentage of income
- 2.5% of household income
- Maximum: Total yearly premium for the national average price of a Bronze plan sold through the Marketplace
Per person
- $695 per adult
- $347.50 per child under 18
- Maximum: $2,085
However, most people don’t know it is prorated over 12 months. For example, if you had insurance half the year, your penalty would be $347.50 ($695/2), assuming you are a single household tax payer and $695 is less than 2.5% of your modified adjusted gross income (MAGI).
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Thanks for the info
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