Requirement to maintain minimum essential coverage
An applicable individual shall for each month beginning after 2013 ensure that the individual, and any dependent of the individual who is an applicable individual, is covered under minimum essential coverage for such month.
Shared responsibility payment
In general
If a taxpayer who is an applicable individual, or an applicable individual for whom the taxpayer is liable under paragraph (3), fails to meet the requirement of subsection (a) for 1 or more months, then, except as provided in subsection (e), there is hereby imposed on the taxpayer a penalty with respect to such failures in the amount determined under subsection (c).
Inclusion with return
Any penalty imposed by this section with respect to any month shall be included with a taxpayer’s return under chapter 1 for the taxable year which includes such month.
Payment of penalty
Amount of penalty
In general
Monthly penalty amounts
Flat dollar amount
Percentage of income
Applicable dollar amount
In general
Except as provided in subparagraphs (B) and (C), the applicable dollar amount is $0.
Phase in
The applicable dollar amount is $95 for 2014 and $325 for 2015.
Special rule for individuals under age 18
If an applicable individual has not attained the age of 18 as of the beginning of a month, the applicable dollar amount with respect to such individual for the month shall be equal to one-half of the applicable dollar amount for the calendar year in which the month occurs.
Terms relating to income and families
Family size
The family size involved with respect to any taxpayer shall be equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year.
Household income
Modified adjusted gross income
Applicable individual
In general
The term “applicable individual” means, with respect to any month, an individual other than an individual described in paragraph (2), (3), or (4).
Religious exemptions
Religious conscience exemptions
In general
Special rules
Medical health services defined
For purposes of this subparagraph, the term “medical health services” does not include routine dental, vision and hearing services, midwifery services, vaccinations, necessary medical services provided to children, services required by law or by a third party, and such other services as the Secretary of Health and Human Services may provide in implementing section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act.
Attestation required
Clause (i)(II) shall apply to an individual for months in a taxable year only if the information provided by the individual under section 1411(b)(5)(A) of such Act includes an attestation that the individual has not received medical health services during the preceding taxable year.
Health care sharing ministry
In general
Such term shall not include any individual for any month if such individual is a member of a health care sharing ministry for the month.
Health care sharing ministry
Individuals not lawfully present
Such term shall not include an individual for any month if for the month the individual is not a citizen or national of the United States or an alien lawfully present in the United States.
Incarcerated individuals
Such term shall not include an individual for any month if for the month the individual is incarcerated, other than incarceration pending the disposition of charges.
Exemptions
Individuals who cannot afford coverage
In general
Any applicable individual for any month if the applicable individual’s required contribution (determined on an annual basis) for coverage for the month exceeds 8 percent of such individual’s household income for the taxable year described in section 1412(b)(1)(B) of the Patient Protection and Affordable Care Act. For purposes of applying this subparagraph, the taxpayer’s household income shall be increased by any exclusion from gross income for any portion of the required contribution made through a salary reduction arrangement.
Required contribution
Special rules for individuals related to employees
1
Indexing
In the case of plan years beginning in any calendar year after 2014, subparagraph (A) shall be applied by substituting for “8 percent” the percentage the Secretary of Health and Human Services determines reflects the excess of the rate of premium growth between the preceding calendar year and 2013 over the rate of income growth for such period.
Taxpayers with income below filing threshold
Any applicable individual for any month during a calendar year if the individual’s household income for the taxable year described in section 1412(b)(1)(B) of the Patient Protection and Affordable Care Act is less than the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer.
Members of Indian tribes
Any applicable individual for any month during which the individual is a member of an Indian tribe (as defined in section 45A(c)(6)).
Months during short coverage gaps
In general
Any month the last day of which occurred during a period in which the applicable individual was not covered by minimum essential coverage for a continuous period of less than 3 months.
Special rules
Hardships
Any applicable individual who for any month is determined by the Secretary of Health and Human Services under section 1311(d)(4)(H) to have suffered a hardship with respect to the capability to obtain coverage under a qualified health plan.
Minimum essential coverage
In general
Government sponsored programs
Employer-sponsored plan
Coverage under an eligible employer-sponsored plan.
Plans in the individual market
Coverage under a health plan offered in the individual market within a State.
Grandfathered health plan
Coverage under a grandfathered health plan.
Other coverage
Such other health benefits coverage, such as a State health benefits risk pool, as the Secretary of Health and Human Services, in coordination with the Secretary, recognizes for purposes of this subsection.
Eligible employer-sponsored plan
Excepted benefits not treated as minimum essential coverage
Individuals residing outside United States or residents of territories
Insurance-related terms
Any term used in this section which is also used in title I of the Patient Protection and Affordable Care Act shall have the same meaning as when used in such title.
Administration and procedure
In general
The penalty provided by this section shall be paid upon notice and demand by the Secretary, and except as provided in paragraph (2), shall be assessed and collected in the same manner as an assessable penalty under subchapter B of chapter 68.
Special rules
Waiver of criminal penalties
In the case of any failure by a taxpayer to timely pay any penalty imposed by this section, such taxpayer shall not be subject to any criminal prosecution or penalty with respect to such failure.
Limitations on liens and levies
Pub. L. 111–148, title I, § 1501(b)124 Stat. 244Pub. L. 111–152, title I124 Stat. 1032Pub. L. 111–159, § 2(a)124 Stat. 1123Pub. L. 111–173, § 1(a)124 Stat. 1215Pub. L. 115–97, title I131 Stat. 2060Pub. L. 115–120, div. C, § 3002(g)(2)(A)132 Stat. 35Pub. L. 115–271, title IV, § 4003(a)132 Stat. 3959Pub. L. 119–21, title VII, § 71301(d)139 Stat. 322(Added and amended , title X, § 10106(b)–(d), , , 909, 910; , §§ 1002, 1004(a)(1)(C), (2)(B), , , 1034; , , ; , , ; , §§ 11002(d)(1)(GG), 11081(a), , , 2092; , , ; , , ; , , .)
Amendment of Subsection (d)(3)
Pub. L. 119–21, title VII, § 71301(d)139 Stat. 322, (e), , , provided that, applicable to taxable years beginning after , subsection (d)(3) of this section is amended by striking “an alien lawfully present in the United States” and inserting “an eligible alien (within the meaning of section 36B(e)(2))”. See 2025 Amendment notes below.
Inflation Adjusted Items for Certain Years
section 1 of this titleFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under .
Editorial Notes
References in Text
Pub. L. 111–148124 Stat. 119section 18001 of Title 42The Patient Protection and Affordable Care Act and such Act, referred to in subsecs. (d)(2)(A), (e)(1)(A), (2), and (f)(5), are , , . Title I of the Act enacted chapter 157 of Title 42, The Public Health and Welfare, and enacted, amended, and transferred numerous other sections and notes in the Code. Sections 1311(d)(4)(H), 1411(b)(5)(A), and 1412(b)(1)(B) of the Act are classified to sections 18031(d)(4)(H), 18081(b)(5)(A), and 18082(b)(1)(B), respectively, of Title 42. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
act Aug. 14, 1935, ch. 53149 Stat. 620section 1397gg(g) of Title 42section 1305 of Title 42The Social Security Act, referred to in subsec. (f)(1)(A)(i) to (iii), is , . Part A of title XVIII of the Act is classified generally to part A (§ 1395c et seq.) of subchapter XVIII of chapter 7 of Title 42, The Public Health and Welfare. Titles XIX and XXI of the Act are classified generally to subchapters XIX (§ 1396 et seq.) and XXI (§ 1397aa et seq.), respectively, of chapter 7 of Title 42. Section 2107(g) of the Act is classified to . For complete classification of this Act to the Code, see and Tables.
section 300gg–91 of Title 42Section 2791 of the Public Health Service Act, referred to in subsec. (f)(2)(A), (3), is classified to , The Public Health and Welfare.
Amendments
Pub. L. 119–212025—Subsec. (d)(3). substituted “an eligible alien (within the meaning of section 36B(e)(2))” for “an alien lawfully present in the United States”.
Pub. L. 115–2712018—Subsec. (d)(2)(A). amended subpar. (A) generally. Prior to amendment, text read as follows: “Such term shall not include any individual for any month if such individual has in effect an exemption under section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act which certifies that such individual is—
“(i) a member of a recognized religious sect or division thereof which is described in section 1402(g)(1), and
“(ii) an adherent of established tenets or teachings of such sect or division as described in such section.”
Pub. L. 115–120Subsec. (f)(1)(A)(iii). inserted “or under a qualified CHIP look-alike program (as defined in section 2107(g) of the Social Security Act)” before comma at end.
Pub. L. 115–97, § 11081(a)(1)2017—Subsec. (c)(2)(B)(iii). , substituted “Zero percent” for “2.5 percent”.
Pub. L. 115–97, § 11081(a)(2)(A)Subsec. (c)(3)(A). , substituted “$0” for “$695”.
Pub. L. 115–97, § 11081(a)(2)(B)Subsec. (c)(3)(D). , struck out subpar. (D). Text read as follows: “In the case of any calendar year beginning after 2016, the applicable dollar amount shall be equal to $695, increased by an amount equal to—
“(i) $695, multiplied by
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting ‘calendar year 2015’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
If the amount of any increase under clause (i) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.”
Pub. L. 115–97, § 11002(d)(1)(GG)Subsec. (c)(3)(D)(ii). , substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Pub. L. 111–148, § 10106(b)(1)2010—Subsec. (b)(1). , amended par. (1) generally. Prior to amendment, text read as follows: “If an applicable individual fails to meet the requirement of subsection (a) for 1 or more months during any calendar year beginning after 2013, then, except as provided in subsection (d), there is hereby imposed a penalty with respect to the individual in the amount determined under subsection (c).”
Pub. L. 111–148, § 10106(b)(2)Subsec. (c)(1), (2). , amended pars. (1) and (2) generally. Prior to amendment pars. (1) and (2) related to the amount of and dollar limitations on penalty for failure to maintain minimum essential coverage.
Pub. L. 111–152, § 1002(a)(1)(A)Subsec. (c)(2)(B). , inserted “the excess of” before “the taxpayer’s household income” and “for the taxable year over the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer” before “for the taxable year” in introductory provisions.
Pub. L. 111–152, § 1002(a)(1)(B)Subsec. (c)(2)(B)(i). , substituted “1.0” for “0.5”.
Pub. L. 111–152, § 1002(a)(1)(C)Subsec. (c)(2)(B)(ii). , substituted “2.0” for “1.0”.
Pub. L. 111–152, § 1002(a)(1)(D)Subsec. (c)(2)(B)(iii). , substituted “2.5” for “2.0”.
Pub. L. 111–152, § 1002(a)(2)(A)Subsec. (c)(3)(A). , substituted “$695” for “$750”.
Pub. L. 111–152, § 1002(a)(2)(B)Subsec. (c)(3)(B). , substituted “$325” for “$495”.
Pub. L. 111–148, § 10106(b)(3), substituted “$495” for “$350”.
Pub. L. 111–152, § 1002(a)(2)(C)Subsec. (c)(3)(D). , substituted “$695” for “$750” in introductory provisions and cl. (i).
Pub. L. 111–152, § 1004(a)(1)(C)Subsec. (c)(4)(B)(i), (ii). , substituted “modified adjusted gross” for “modified gross”.
Pub. L. 111–152, § 1004(a)(2)(B)Subsec. (c)(4)(C). , amended subpar. (C) generally. Prior to amendment, text read as follows: “The term ‘modified gross income’ means gross income—
“(i) decreased by the amount of any deduction allowable under paragraph (1), (3), (4), or (10) of section 62(a),
“(ii) increased by the amount of interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and
“(iii) determined without regard to sections 911, 931, and 933.”
Pub. L. 111–152, § 1002(b)(1)Subsec. (c)(4)(D). , struck out subpar. (D). Text read as follows:
In general42 U.S.C. 1397jj(c)(5)“(i) .—The term ‘poverty line’ has the meaning given that term in section 2110(c)(5) of the Social Security Act ().
Poverty line used“(ii) .—In the case of any taxable year ending with or within a calendar year, the poverty line used shall be the most recently published poverty line as of the 1st day of such calendar year.”
Pub. L. 111–148, § 10106(c)Subsec. (d)(2)(A). , amended subpar. (A) generally. Prior to amendment, text read as follows: “Such term shall not include any individual for any month if such individual has in effect an exemption under section 1311(d)(4)(H) of the Patient Protection and Affordable Care Act which certifies that such individual is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section.”
Pub. L. 111–148, § 10106(d)Subsec. (e)(1)(C). , amended subpar. (C) generally. Prior to amendment, text read as follows: “For purposes of subparagraph (B)(i), if an applicable individual is eligible for minimum essential coverage through an employer by reason of a relationship to an employee, the determination shall be made by reference to the affordability of the coverage to the employee.”
Pub. L. 111–152, § 1002(b)(2)Subsec. (e)(2). , substituted “below filing threshold” for “under 100 percent of poverty line” in heading and “the amount of gross income specified in section 6012(a)(1) with respect to the taxpayer.” for “100 percent of the poverty line for the size of the family involved (determined in the same manner as under subsection (b)(4)).” in text.
Pub. L. 111–159, § 2(a)(1)Subsec. (f)(1)(A)(iv). , added cl. (iv) and struck out former cl. (iv) which read as follows: “the TRICARE for Life program,”.
Pub. L. 111–173, § 1(a)Subsec. (f)(1)(A)(v). , amended cl. (v) generally. Prior to amendment, cl. (v) read as follows: “the veteran’s health care program under chapter 17 of title 38, United States Code,”.
Pub. L. 111–159, § 2(a)(2)Subsec. (f)(1)(A)(vii). –(4), added cl. (vii).
Statutory Notes and Related Subsidiaries
Effective Date of 2025 Amendment
Pub. L. 119–21section 71301(e) of Pub. L. 119–21section 36B of this titleAmendment by , applicable to taxable years beginning after , see , set out as a note under .
Effective Date of 2018 Amendment
Pub. L. 115–271, title IV, § 4003(b)132 Stat. 3960
Pub. L. 115–120, div. C, § 3002(g)(2)(B)132 Stat. 35
Effective Date of 2017 Amendment
section 11002(d)(1)(GG) of Pub. L. 115–97section 11002(e) of Pub. L. 115–97section 1 of this titleAmendment by applicable to taxable years beginning after , see , set out as a note under .
Pub. L. 115–97, title I, § 11081(b)131 Stat. 2092
Effective Date of 2010 Amendment
Pub. L. 111–173, § 1(b)124 Stat. 1215
Pub. L. 111–159, § 2(b)124 Stat. 1123
Effective Date
Pub. L. 111–148, title I, § 1501(d)124 Stat. 249
Construction of 2018 Amendment
Pub. L. 115–271, title IV, § 4003(c)132 Stat. 3960