Case Study 1: Calculating the Payment
Jim, an unmarried 30-year-old with no dependents, did not have MEC for any month during 2018 and does not qualify for a coverage exemption. For 2018, Jim's household income was $40,000 and his filing threshold is $12,000.
Because $700 is greater than $695, Jim's payment amount for each month is $58.33, or 1/12 of the $700 amount. For Jim, the sum of all monthly payment amounts is $700.
Jim's SRP for 2018 is $700, the lesser of the sum of the monthly payments amounts or the sum of the monthly national average bronze plan premiums. Jim will make his SRP for the months without MEC when he files his 2018 income tax return. Additional information about health coverage exemptions under the ACA can be found in the instructions for Form 8965.