The individual mandate of the Affordable Care Act (ACA) requires individuals to have health insurance, qualify for an exemption to the mandate or pay a penalty. The law states that those who do not comply with the individual mandate are to pay a penalty included as part of their federal income taxes.
However, in December 2017, the Tax Cuts and Jobs Act of 2017 reduced the penalty to zero for failure to comply with the individual mandate. This change is effective January 1, 2019.
The change in 2017 means the individual mandate is still the law. The lowering of the penalty means there is no penalty associated with not enrolling in coverage.
On December 18, 2019, a Fifth Circuit appeals court upheld a Texas district court’s decision found that the ACA’s individual mandate was unconstitutional. For now, this court decision has no immediate day-to-day impact.
Learn more about the requirements, penalties and exemptions of the individual mandate.
Read IRS FAQs Read Individual Mandate FAQs
GuideStone® is committed to offering affordable, quality health coverage that complies with applicable ACA requirements, provides minimum essential coverage and stays true to the biblical values of our participants.
GuideStone welcomes the opportunity to share this general information. However, this information is not intended to be relied upon as legal advice. This information may be subject to interpretation or clarification over time, so we cannot guarantee its long-term accuracy or how it might be determined to apply in certain situations. However, we hope it will provide you a useful frame of reference as you endeavor to carry out your responsibilities and serve your employees.