Washington, D.C. also passed an individual mandate for 2019, and other states are lining up.
Beginning in 2019, New Jersey residents are required to secure health insurance or pay a fine of either 2.5 percent of their household income or $695 per adult and $347.50 per child, whichever is greater.
Just as was necessary with the federal mandate, New Jersey’s mandate requires employers with employees or COBRA participants who have resided in the state at any time over the past year to provide information on insurance coverage. This includes the submission of Forms 1094 and 1095 for New Jersey residents, in addition to the standard ACA IRS filing.
New Jersey requires Federal Forms 1095 and 1094, including applicable resident information, to be submitted to the state by March 31, 2020.
An important factor to keep top of mind: Any out-of-state employer that employs residents of New Jersey has the same filing requirements as businesses located in New Jersey.
While the individual mandate will apply to most District residents, there are several exemptions that individual tax payers may be eligible for, including:
- Residents with income low enough that they aren’t required to file a DC tax return
- Member of a federally recognized Indian Tribe
- Those already covered under the Immigrant Children Program or the District’s Healthcare Alliance
- Members of religious groups, recognized by the federal government, who are opposed to and do not accept insurance support and benefits
- Those who work in the District but reside in neighboring states
Coming in 2020
Vermont, Rhode Island and California have all passed individual mandates for 2020. Other states that are considering adopting a state-based mandate include Connecticut, Maryland, Hawaii, Minnesota and Washington.
While many unknowns remain, MoneyWise expects that states adopting a mandate requiring individuals to carry coverage will need a way to validate that an employee has coverage either on the exchange or through their employer. This latter validation will likely come through a state tax form. And, while many states, like New Jersey, will likely assume forms and penalties that mimic the federal ACA’s forms and penalties, it further complicates a posture of compliance to avoid expensive penalties.