Medical Insurance in Michigan

Did you know that medical insurance in Michigan is actually mandated by the Affordable Care Act? This states that people who refuse to avail of medical insurance will have to pay a federal tax penalty. The local government in Michigan enacts this mandate so that individuals are never without the necessary funds to pay for medical services and procedures. There are lots of technicalities and specifics under medical insurance in Michigan and it is in understanding these that we can put ourselves in a better position to protect our health and our  finances from potential injury.

More about Medical Insurance in Michigan

The “individual mandate” provision of the Affordable Care Act states that individuals should purchase medical insurance in Michigan or pay a federal tax penalty. If an individual possesses coverage through an individual plan or through their employer, they are considered covered and will not have to pay for the penalty. But if a person has absolutely no form of health insurance or coverage, they will have to shell out the tax imposed by the local government. The value of this penalty has changed in recent years:

  • In the year 2014, individuals without medical insurance were mandated to pay $95 USD per adult or one percent of their taxable income.
  • In the year 2015, individuals without medical insurance were mandated to pay $325 USD per adult or two percent of their taxable income.
  • In the year 2016, individuals without medical insurance are mandated to pay $695 USD per adult or two and a half percent of their taxable income.

Obviously, there is an upward trend in terms of this federal tax, and many people choose to avail of medical insurance just to steer clear of these steep expenses.

When Will You Be Exempted from Buying Insurance?

Despite the fact that medical insurance is required of individuals residing in Michigan, there are certain instances when the local government will allow a person not to avail of coverage. These instances include lack of the financial stability or monetary resource to pay for insurance, religious and spiritual beliefs that prohibit the purchase and use of medical insurance, or if it would cost a person more than eight percent of their income to avail of health insurance. The federal tax penalty also does not apply to people who had health insurance issued in 2013 which was subsequently cancelled for whatever reason.