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World Changers Church International
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HCR COMMUNICATION
Your Responsibility for Health Insurance
The health care reform law required most Americans to have
had health insurance by January 1, 2014. This requirement
is called the “Individual Mandate.” You can meet this
requirement by getting health insurance through:
• World Changers Church International (if you are benefits
eligible)
• Your spouse’s employer (if eligible)
• A Health Insurance Marketplace available in your state
(which may also be referred to as a public exchange)
• Other coverage options that may be available to you,
including an insurance plan outside the Health Insurance
Marketplace or through government programs such as
Medicare and Medicaid.
If you do not enroll in health insurance, you may have to
pay a tax penalty based on your income and family status.
For every month you are without health insurance you may
have to pay this tax penalty. The total penalty amount will
be collected as a single payment once a year and the
tax penalty is scheduled to increase in future years. The
actual IRS formula for calculating the amount of the penalty
is complex and consists of a number of components, but
generally, the annual penalty for 2016 will be the higher of a
percentage of your household income or a per person fee.
Percentage of income
• 2.5% of household income
• Maximum: Total yearly premium for the national average
price of a Bronze plan sold through the Marketplace
Per Person
• $695 per adult
• $347.50 per child under 18
• Maximum: $2,085
Below are examples of the tax penalties for 2016, using a
“tax filing threshold” in 2015 of $10,150 for individual tax
returns and $20,500 for jointly filed tax returns for those
under age 65. The 2016 tax penalty will increase to either
$695 per person + $347.50 per child < age 18 or 2.5% of
a person’s household income ($2085 is the max penalty)
whichever is larger.
* These are only examples. Actual penalties will vary based on each person’s circumstances. World Changers Church International can’t provide tax advice
to employees. If you have questions, talk with your tax advisor.
Family Size
Household
Income
(Example)
How the Penalty is Calculated:
Greater of:
2016
Tax
Penalty
Individual
$25,000
$695 Flat Dollar OR 2.5% of ($25,000 - $10,150)
(household income minus the tax filing threshold)
$695
Married Couple
$40,000
($695 x 2) adults OR 2.5% of ($40,000 - $20,300)
(household income minus the tax filing threshold)
$1,390.00
Family of 3
Assumes (1 child < age 18)
$40,000
($695 x 2) + 347.5 OR 2.5% of ($40,000 - $20,300)
(household income minus the tax filing threshold)
$1,737.50
Family of 4
Assumes 2 children < age 18)
$40,000
($695 x 2) +( 347.5 x 2) OR 2.5% of ($40,000 - $20,300)
(household income minus the tax filing threshold)
$2,085.00
Family of 5
Assumes 3 Children < age 18
$150,000
($695 x 2) + (347.5 x 3) OR 2.5% of ($150,000 - $20,300)
(household income minus the tax filing threshold)
Penalty Not to Exceed $2085.00
Not to Exceed
$2,085.00