Frequently Asked Questions - Individual & Family


  • Does everyone have to purchase health insurance?

    Yes. Beginning January 1, 2014, all U.S. Citizens and legal residents will be required to obtain health insurance coverage. Many will be covered by an employer plan, some will qualify for health programs and others will purchase it themselves.

  • What happens if I don’t buy coverage?

    Starting in 2014, you will pay a tax penalty. The penalty will increase over time:

    • In 2014, it will be the greater of $95 per adult or 1% of taxable income.
    • In 2015, it will be the greater of $325 per adult or 2% of taxable income.
    • In 2016, it will be the greater of $695 per adult or 2.5% of taxable income.
    • After 2016, the tax penalty increases annually based on a cost-of-living adjustment.
    • A person will only pay one-twelfth of the total annual penalty for each month without coverage.
    • The penalty for a child is half that of an adult.
    • A maximum penalty would be calculated based on premiums for plans offered through MNsure.
  • Are there any exceptions to the Individual Mandate?

    Yes. The law will provide exceptions for:

    • Individuals and families below a certain income
    • People who cannot afford the coverage that is available
    • Individuals who have been uninsured for less than three months
    • Members of American Indian tribes
    • People who do not obtain coverage because of religious objectionord
  • How do I apply for an exemption from the individual mandate?

    Instructions on how to apply for an exemption from the individual mandate is available here on our website.

  • I am young and healthy. Why should I buy health insurance?

    Accidents or sickness can happen to anybody. The average cost for a broken arm using hospital emergency services in Minnesota is $2,500. Plus, you are required to do so by law.


How it will work