A payment (sometimes called “penalty,” “fine,” or “individual mandate”) you must make if you don’t have health insurance that qualifies as minimum essential coverage. For 2016 the penalty is either: 2.5% of your household income or $695 per adult ($347.50 per child), whichever is higher. The fee rises with inflation in future years.

You’ll pay the penalty on your federal income tax return. The IRS calls the fee the Shared Responsibility Payment.

People with very low incomes and some others may be eligible for health care exemptions.

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