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Individual mandate

Individual mandate / tax penalty

The Affordable Care Act (ACA) introduced tax penalties, also known as the individual mandate, for people who could afford health insurance but failed to enroll in a health plan. However, the Trump Administration abolished the individual mandate, which means you will no longer be fined for not having an ACA-compliant health insurance policy. 

The exceptions are California, the District of Columbia, Massachusetts, New Jersey, Rhode Island, and Vermont, which are currently the only states to have a state-imposed penalty.  

Related Terms

Affordable Care Act (ACA)

Obamacare

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