True or False
If you don't have health insurance in 2014, you won't have to buy it. But you'll probably have to pay a penalty when you file your 2015 taxes. There are two ways your fee may be calculated. You may owe $95 per adult and $47.50 per child, up to $285 for a family. Or you may owe 1% of your gross income for the year. You’ll owe whichever amount is higher. The penalty greatly increases over the next few years.
Why the penalty? It's incentive to get people who can afford health insurance to buy it. A mix of healthy and sick people covered by insurance helps keep the costs down.