Frequently Asked Questions - Individual & Family

Requirements

  • Does everyone have to purchase health insurance?

    Yes. All U.S. Citizens, legal residents and lawfully present individuals are 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?

    You will owe 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 (up to a maximum of $285 per family).
    • In 2015, it will be the greater of $325 per adult or 2% of taxable income (up to a maximum of $975 per family).
    • In 2016, it will be the greater of $695 per adult or 2.5% of taxable income (up to a maximum of $2,085).
    • 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. Exemptions are available for:

    • Individuals and families below a certain income level
    • Individuals who cannot afford the coverage that is available
    • Individuals who have suffered a hardship, including eviction, bankruptcy or domestic violence
    • Individuals who have been uninsured for less than three months
    • Members of a federally-recognized tribe
    • Members of a religious group that objects to health coverage
    • Members of a recognized health care sharing ministry
    • Individuals who are incarcerated
  • 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.

  • 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.

Cost

How it works