Affordable Care Act: Understanding the basics


The law no longer allows insurance companies to deny coverage because you have a pre-existing condition. It also puts lower caps on out-of-pocket costs and requires all plans to offer certain kinds of coverage.

In order for that system to pay for itself, all Americans must be part of the system and must have health insurance.

Without some type of mandatory individual coverage requirement, the plan would fail.

Q: What if someone doesn’t get insurance? What is the penalty and how is it paid? Is it through a tax penalty?

A: The penalty (or tax) for an individual who doesn’t have insurance:


$95 per adult, or 1 percent of your household income (whichever is greater)

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