The Internal Revenue Service (IRS) has issued final regulations to implement the ACA requirement that every individual have basic health insurance coverage, qualify for an exemption, or make a “shared responsibility” payment when filing a federal income tax return, beginning in 2014. Individuals are exempt from the payment obligation if coverage is unaffordable, if they spend less than three consecutive months without coverage, or if they qualify for an exemption for reasons such as hardship, religious beliefs, or other statutorily-exempt category (e.g., members of Indian tribes, members of health care sharing ministries, incarcerated individuals, and individuals who are not lawfully present in the country). The regulations outline the circumstances under which these exemptions from shared responsibility payments apply. The rule also discusses the categories of health care coverage (e.g., employer-sponsored coverage, coverage purchased in the individual market, and certain government health programs) that are designated as meeting minimum essential coverage requirements. According to an IRS fact sheet, fewer than 2% of Americans are expected to owe a shared responsibility payment, which will equal the greater of 1% of annual income or $95 per person in 2014, increasing to the greater of 2.5% of income or $695 per person by 2016.  As previously reported, the Obama Administration announced in July that it was delaying the ACA’s employer shared responsibility payment obligation (commonly referred to as the “employer mandate”) until January 1, 2015.