How health care reform hits you

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The Supreme Court has upheld the Obama health care law’s requirement that virtually all Americans must have insurance or face a penalty. Will you have to pay, and how much? I’m Doug Whiteman with your Personal Finance Minute.

The law’s so-called individual mandate affects you only if you don’t already have insurance, and then, there are many exceptions. People with modest incomes, members of Native American tribes and those who are in prison are all exempt, to give a few examples. The nonpartisan think tank the Urban Institute estimates that only 3 percent of Americans under 65 will have to buy insurance or face the penalty, fine, tax — whatever you want to call it.

It kicks in starting in 2014 and will cost an adult 1 percent of household income or $95, whichever is greater. By 2016, it will rise to either 2.5 percent of income or $695 for individuals, $2,085 for the largest families.

For more on changes in health insurance, visit I’m Doug Whiteman.