The Internal Revenue Service has issued a proposed rule for the “shared responsibility payments” that will be owed by individuals who do not maintain “essential minimum health insurance coverage” for all 12 months of each tax year.  The payment will be calculated and owed as a penalty on the individual’s federal tax return.

The proposed rule also details the statutory exemptions for individuals with other health insurance coverage (such as members of American Indian tribes, individuals with religious objections to health insurance, incarcerated individuals, individuals who have non-resident immigration statuses or are “not lawfully present in the U.S.”, and individuals for whom “affordable coverage” is not available.   There also are exemptions for hardship and short gaps (less than 3 months) in coverage.

The payment is based on a complex calculation but is likely to be a minimum of $285 for 2014, increasing to approximately $975 in 2015, and then to $2,085 in 2016.

Comments on the proposed rule are due by May 2, 2013, and a public hearing to receive comments will be held May 29, 2013 at the Internal Revenue Service headquarters in Washington, D.C.

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