The Patient Protection and Affordable Care Act (ACA) became law in 2010 as a comprehensive initiative to increase health insurance coverage among U.S. residents. Under the ACA, the federal government, state governments, insurers, employers and individuals are given shared responsibility to reform and improve the availability, quality and affordability of health insurance coverage in the United States.

All U.S. residents, subject to certain exceptions, must secure the minimum essential health coverage for themselves and their dependents or pay an annualized penalty tax for each month of non-compliance (Individual Mandate). Minimum essential coverage is available through employer-sponsored plans, individual market plans, or government-sponsored programs, such as Medicare/Medicaid. Individual mandate exceptions apply if the health coverage is unaffordable because the cost exceeds 8% of household income, or if the absence of health coverage is less than three consecutive months. The annualized penalty for not having essential coverage escalates yearly and depends on the level of income and number of household members.

IRS Resources

The IRS hosts a library of information for individual households about the ACA.

IRS Videos

Search Support

No content available. Please view other tabs for available content.

No content available. Please view other tabs for available content.

No content available. Please view other tabs for available content.

No content available. Please view other tabs for available content.

Need more information?

Email Support