Penalty hike ahead for uninsured Americans

A federal penalty for American adults without health insurance is set to jump to 695 dollars in 2016, unless it is less than 2.5 percent of a yearly household income.

The cost for uninsured for every child under the age of 18 will be $347.50.

The penalty currently stands at 325 dollars per adult, but health officials like Kat Gunby say it has a bigger purpose.

“The takeaway point is that the price of the penalty goes up to the same cost as a bronze plan offered on Maryland Health Connection, so it’s really worth someone’s time and money to pay for the coverage as opposed to getting a penalty.” Says Gunby.

Gunby is the Program Coordinator for the Lower Shore Health Assistance program at the Worcester County Health Department. She says the penalty rise could be the push needed to get more people insured. According to Gunby, Maryland is already on that track.

The state has reportedly seen a 58% reduction in uninsured adults in the past four years. It’s fallen from 730,000 in 2011 to 308,000 as of August 2015. This is a trend Gunby expects to continue. She tells 47 ABC there are still thousands who are eligible for tax credits or medicaid.

With November 1st right around the corner, she encourages them to reach out to their local health departments for options.

“It doesn’t have to be an intimidating process.” She explains. “This is about making sure our community is healthy and has the coverage they need.”

Gunby says there are exceptions to the penalties and one is income-based. The other extends to those who go without coverage for less than one full year.

In Maryland, there is now an option for an automatic renewal for those who signed up last year. For more information, contact the Lower Shore Health Assistance Program.

Open enrollment begins November 1 and ends January 31.