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REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COVERAGE

Supreme Court Upholds Obama's Affordable Care ActFrom the Affordable Health Care Act

“(a) Requirement To Maintain Minimum Essential Coverage.–An
applicable individual shall for each month beginning after 2013 ensure
that the individual, and any dependent of the individual who is an
applicable individual, is covered under minimum essential coverage for
such month.
“(b) Shared Responsibility Payment
.–
“(1) In general.– <<NOTE: Penalty.>> If an applicable
individual fails to meet the requirement of subsection (a) for 1
or more months during any calendar year beginning after 2013,
then, except as provided in subsection (d), there is hereby
imposed a penalty with respect to the individual in the amount
determined under subsection (c).
“(2) Inclusion with return.–Any penalty imposed by this
section with respect to any month shall be included with a
taxpayer’s return under chapter 1 for the taxable year which
includes such month.
“(3) Payment of penalty.–If an individual with respect to
whom a penalty is imposed by this section for any month–
“(A) is a dependent (as defined in section 152) of
another taxpayer for the other taxpayer’s taxable year
including such month, such other taxpayer shall be
liable for such penalty, or
“(B) files a joint return for the taxable year
including such month, such individual and the spouse of
such individual shall be jointly liable for such
penalty.

“(c) Amount of Penalty.–
“(1) In general.–The penalty determined under this
subsection for any month with respect to any individual is an
amount equal to \1/12\ of the applicable dollar amount for the
calendar year.
“(2) Dollar limitation.–The amount of the penalty imposed
by this section on any taxpayer for any taxable year with
respect to all individuals for whom the taxpayer is liable under
subsection (b)(3) shall not exceed an amount equal to 300
percent the applicable dollar amount (determined without

[[Page 124 STAT. 245]]

regard to paragraph (3)(C)) for the calendar year with or within
which the taxable year ends.
“(3) Applicable dollar amount.–For purposes of paragraph
(1)–
“(A) In general.–Except as provided in
subparagraphs (B) and (C), the applicable dollar amount
is $750.
“(B) Phase in.–The applicable dollar amount is $95
for 2014 and $350 for 2015.
“(C) Special rule for individuals under age 18.–If
an applicable individual has not attained the age of 18
as of the beginning of a month, the applicable dollar
amount with respect to such individual for the month
shall be equal to one-half of the applicable dollar
amount for the calendar year in which the month occurs.
“(D) Indexing of amount.–In the case of any
calendar year beginning after 2016, the applicable
dollar amount shall be equal to $750, increased by an
amount equal to–
“(i) $750, multiplied by
“(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the calendar
year, determined by substituting `calendar year
2015′ for `calendar year 1992′ in subparagraph (B)
thereof.
If the amount of any increase under clause (i) is not a
multiple of $50, such increase shall be rounded to the
next lowest multiple of $50.
“(4) Terms relating to income and families.–For purposes
of this section–
“(A) Family size.–The family size involved with
respect to any taxpayer shall be equal to the number of
individuals for whom the taxpayer is allowed a deduction
under section 151 (relating to allowance of deduction
for personal exemptions) for the taxable year.
“(B) Household income.–The term `household income’
means, with respect to any taxpayer for any taxable
year, an amount equal to the sum of–
“(i) the modified gross income of the
taxpayer, plus
“(ii) the aggregate modified gross incomes of
all other individuals who–
“(I) were taken into account in
determining the taxpayer’s family size
under paragraph (1), and
“(II) were required to file a
return of tax imposed by section 1 for
the taxable year.
“(C) Modified gross income.–The term `modified
gross income’ means gross income–
“(i) decreased by the amount of any deduction
allowable under paragraph (1), (3), (4), or (10)
of section 62(a),
“(ii) increased by the amount of interest
received or accrued during the taxable year which
is exempt from tax imposed by this chapter, and
“(iii) determined without regard to sections
911, 931, and 933.
“(D) Poverty line.–

[[Page 124 STAT. 246]]

“(i) In general.–The term `poverty line’ has
the meaning given that term in section 2110(c)(5)
of the Social Security Act (42 U.S.C.
1397jj(c)(5)).
“(ii) Poverty line used.–In the case of any
taxable year ending with or within a calendar
year, the poverty line used shall be the most
recently published poverty line as of the 1st day
of such calendar year.

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