INSURANCE SCOFFLAW FINES CAPPED AT $2,448 PER PERSON

MIAMI — Federal officials have capped the amount of money scofflaws will be forced to pay if they don’t buy insurance this year at $2,448 per person and $12,240 for a family of five.

The amount is equal to the national average annual premium for a bronze level health plan. The penalty for the first year starts at $95 per adult or $47.50 per child under 18, and it can rise to as much as 1 percent of annual household income. The latest figure limits what the government can charge people using the income computation for the fine, which is due when people file their 2014 taxes.

The figures, released late Thursday, are important because the White House has only provided theoretical caps in the past. Conservative lawmakers and groups that are critical of the Affordable Care Act encouraged consumers to skip buying insurance, arguing it would be cheaper to pay a $95 penalty, but often failed to mention the 1 percent clause.

The uninsured will owe 1/12th of the annual payment for each month they or their dependents don’t have either coverage or an exemption, according to the IRS.

A person making $45,000 per year would owe $450 for the 2014 tax year. The penalty for not buying insurance increases to $325 or 2 percent of income, whichever is higher, for 2015.

Federal researchers predict that about 4 million people, including dependents, could be hit with fines by 2016. The Congressional Budget Office had previously projected 6 million would pay fines, but dropped the estimate because more people will be exempt from the law, partly due to changes in regulations.

If someone is due a tax refund, the IRS can deduct the penalty from the refund. Otherwise, the IRS will let people know what’s owed or hold back the amount of the penalty fee from future tax refunds, but there are no liens or criminal penalties for failing to pay.

THE ASSOCIATED PRESS

mination based on the information they provided in their application.”

Federal health officials ruled on Close’s appeal last month, giving her yet another subsidy estimate, which was within a few dollars of the one she is currently receiving, her attorney said. THE IMPORTANCE OF SUBSIDIES

Subsidies are important to making premiums affordable under the new health care law. About 87 percent of the more than 8 million people who signed up for coverage under the law received subsidies, which are paid directly to the insurance company on behalf of individual consumers, according to data from federal health officials. Consumers pay the difference directly to the insurance company each month just as they do with