Government sets maximum penalty for not purchasing health insurance

Americans who don't receive health insurance benefits from their employers and then don't buy coverage on either the federal or state marketplaces are required under the Affordable Care Act to pay a penalty. According to The Associated Press, the federal government has put a limit on how much people will have to pay the government for not having health insurance this year.

The ACA puts the fine at $95 per person or 1 percent of a individual's income during the first year if the person makes more than $19,650, but that fine will rise next year to $325 or 2 percent of a person's income. It is the percentage of income that could be an issue for people who didn't buy insurance. According to the AP, many people decided to forgo health coverage because they thought it would be cheaper, but that is not always so.

The AP reported the fine cap is now at $2,448 per individual and $12,240 for a five-member family - both of which is significantly more than $95. In fact, insurance may be cheaper. According to The Hill, the amount of money people pay each month in premiums can add up to the same amount of money they could be fined, making insurance more affordable for many.