Washington (CNN) - The health care law signed Tuesday by President Obama is projected to extend insurance coverage to roughly 32 million additional Americans, but what happens to those who don't get themselves covered by health insurance?
The new law creates penalties in the tax code as an incentive.
An adult who does not have health insurance by 2014 would be penalized $95 or 1 percent of income, whichever is greater, so long as the amount does not exceed the price tag of a basic health plan. But by 2016, the penalty increases to $695 for an uninsured adult, and up to $2,085 per household, or 2.5 percent of income, whichever is greater.
A person would also be penalized only if he or she went more than three months of the year without insurance.