What if you don't sign up for the new healthcare law?
You're required to get health coverage under the new healthcare law. If you don't.
The penalties will be phased in over the next three years and will be tied to your income. You will either pay a flat rate, or a percentage of income, whichever is higher.
In 2014 the penalty is 1% of yearly household income, or $95 dollars per adult and $47.50 per child.
In 2015, that increases to 2% of household income or $325 per person.
In 2016 and beyond, the penalty is 2.5% of income or $695 per person.
After that it is adjusted for inflation.
The penalty is applied based on how long you aren't covered. If you are without coverage for fewer than three months in a calendar year, you don't pay. After that, the penalty is prorated on a monthly basis. That means if you didn't have coverage for six months, you'd pay half of what you'd pay if you were without coverage for the full year.