Beginning 2014, the ACA (Affordable Care Act) required all Americans to join a health insurance plan or pay a tax penalty. The penalty for not carrying health insurance in 2018 is $695 per person or 2.5% of total household income, whichever is greater.
Part of the Tax Cuts and Jobs Act signed into law in December 2017 eliminates the National Individual Mandate penalty. The specific provision of the bill only applies to months after December 31, 2018. There is still a penalty for not being insured during 2018 and the penalty will be assessed on tax returns filed in early 2019.
While the National Individual Mandate is eliminated for 2019, there are a few states that will impose a penalty on residents who are uninsured during 2019 and beyond. They are:
- Massachusetts (implemented in 2006)
- New Jersey (implemented for 2019)
- Washington DC (implemented for 2019)
- Vermont (implemented to take effect in 2020)