Talk about kicking someone while they’re down: Turns out there are states that will fine those who cannot afford health insurance. What a time to be alive!
In 2024, around 27.2 million Americans — or 8.2% of the population — didn’t have health insurance. That’s a big number — and yet, it’s a decrease from 2020, when 31.6 million were uninsured.
As of 2019, the federal government repealed the Affordable Care Act’s individual mandate penalty, meaning uninsured Americans are no longer required to pay a fee. That might sound like a relief for those who can’t afford coverage and just hope to stay healthy — unless they live in certain states that still enforce individual mandates with their own tax penalties.
These individual mandate penalties, also known as “shared responsibility payments,” are meant to encourage Americans to enroll in health insurance, helping create balanced risk pools that offset costs for higher-risk individuals. The reasoning makes sense, we guess, but it also overlooks the fact that some people can’t afford even the lowest-tier (bronze) plans.
“For 2026 the CHEAPEST BRONZE plan I could qualify for will cost me $340 with subsidies included and an insane deductible of $7000,” said one user on Reddit. “I think its ridiculous that a healthy 26 year old that eats right and goes to the doctors once a year just for consultation will pay that. I am seriously considering going uninsured and I understand the potential risks.”
Which States Will Fine You?
As of 2025, the following states fine residents who go without qualifying health coverage, and the penalty depends on the jurisdiction you are in.
California
The Golden State implemented its individual mandate in 2020, requiring residents to have Minimum Essential Coverage (MEC) for themselves and their dependents or face a penalty. Those without qualifying coverage may be fined up to $900 per adult ($450 per child), or 2.5% of household income above the state filing threshold, whichever is higher.
“While filing my taxes I found out I have to pay the $950 California penalty fee for not having insurance all year 2025,” said one user on Reddit.
District of Columbia
Washington D.C. fines uninsured residents around $745 per adult ($372.50 per child) or 2.5% of their annual income, whichever is higher.
New Jersey
In 2018, New Jersey introduced its own individual mandate through the Health Insurance Market Preservation Act, meaning residents are expected to carry Minimum Essential Coverage or face a tax penalty. The penalty scales based on household size and income, but it’s capped at the average yearly cost of a bronze-level plan in the state.
Massachusetts
Massachusetts has had an individual mandate in place since 2006 under its Health Care Reform Law, requiring residents to carry minimum creditable coverage (MCC) year-round. Penalties are determined based on factors like age, income, and household size, and are capped at half the cost of the lowest-priced individual plan available through ConnectorCare.
Rhode Island
Uninsured Rhode Islanders might be fined upwards of $695 per adult ($347.50 per child) or 2.5% of household income minus exemptions.
Is There a Way To Avoid Penalties?
If you live in one of these states, there are still ways to avoid the penalty. You can enroll in a basic qualifying plan or see if you meet the requirements for an exemption.
Common exemptions include financial hardship, coverage being too expensive relative to your income, short gaps in coverage, or earning below the tax filing threshold. And if you do need insurance, it’s worth checking for state-level subsidies, as many states now run their own exchanges that can help lower costs.
