What is the Individual Mandate?

The individual mandate was a provision of the Affordable Care Act requiring most Americans to maintain minimum essential health coverage or pay a tax penalty. While the federal tax penalty was reduced to $0 starting in 2019, some states including Massachusetts, New Jersey, California, Rhode Island, and the District of Columbia maintain their own individual mandates with financial penalties for uninsured residents.

Why the individual mandate matters

• Stabilizes insurance markets: Encourages healthy individuals to purchase coverage, balancing risk pools
• Promotes continuous coverage: Reduces gaps in insurance that can lead to worse health outcomes
• Affects state policies: Influences state-level healthcare reform and coverage requirements

How Solace can help

A Solace advocate can help you understand individual mandate requirements in your state, explore exemptions if applicable, and find affordable coverage options to comply with state laws. Advocates can also assist with penalty calculations and payment processes if needed.