Details for Final Regulations of Individual Mandate Published The Internal Revenue Service (IRS) has issued final rules on Tuesday for the individual mandate provision of the Patient Protection and Affordable Care Act (PPACA). The requirement, a centerpiece of the Affordable Care Act, requires most individuals to have minimum essential coverage in 2014 or pay a penalty. If individuals choose not to carry insurance, they are subject to a penalty, starting at $95 per person per year or 1 percent of income in 2014, whichever is greater, and eventually reaching $695 per person or 2.5 percent of income by 2016. The first penalties will be due when individuals file their 2014 tax returns in 2015. The annual penalties for 2014 through 2016 are as follows: 2014: Greater of $95 per adult and $47.50 per child under age 18 ($285 maximum per family), or 1% of income over the tax-filing threshold 2015: Greater of $325 per adult and $162.50 per child under age 18 ($975 maximum per family), or 2% over the tax-filing threshold 2016: Greater of $695 per adult and $347.50 per child under age 18 ($2,085 maximum per family), or 2.5% over the tax-filing threshold The individual mandate is distinct from the employer mandate, which imposes a fee on most large employers that do not offer a minimum level of coverage. The Administration delayed that provision, putting off the effective date until 2015. If you have questions about these changes, call us at 1.800.250.2741 or email solutions@gsanational.com.