Under the Patient Protection and Affordable Care Act, beginning on Jan. 1 everyone must have health coverage, either through an employer-based or individual plan, or pay a penalty known as the individual mandate. Although the penalties for not having health insurance will start out relatively small in 2014, they’re really going to add up by 2016, particularly for people who have a family. By 2016, a family of four with a household income of less than $83,400 would pay a maximum penalty of $2,085. A family of four in a household earning $150,000 would pay $3,750 (2.5 percent of household income).