Effective January 1, 2019, Washington D.C residents will be required to obtain health insurance or pay a penalty. Washington D.C. has joined Massachusetts, New Jersey and Vermont (effective 2020) in passing an individual health mandate requiring residents to have “minimum essential coverage” (MEC) or face a tax penalty.
The District’s new requirement, “Health Insurance Requirement Amendment Act of 2018”, largely mirrors that of the federal penalty of $695 per uninsured or 2.5 percent of household adjusted gross income, whichever is greater. Residents in certain tax brackets will not be subject to the individual mandate and will not be penalized for not carrying health insurance:
· Individuals who are 20-years-old or younger whose annual gross income is equal to or less than 324 percent of the federal poverty level.
· Individuals who are 21-years-old or older whose annual gross income is equal to or less than 222 percent of the federal poverty level.
· Individuals covered under DC Healthcare Alliance or Immigrant Children Program.
· Individuals who are members of federally recognized religious groups that do not accept any insurance benefits.
Revenue collected from the insurance requirement will go into the Individual Insurance Market Affordability and Stability Fund, used to provide outreach to uninsured District residents, provide information to residents about their health insurance options, and support other initiatives to increase insurance availability and affordability.
Reporting requirements under the District’s new legislation have not yet been made available. ADP TotalSource will provide details as additional guidance is released.
The full District’s legislation can be found at http://lims.dccouncil.us/Download/39944/B22-0753-Engrossment.pdf