Federal tax collectors have finalized a rule to penalize individuals who do not obtain health insurance under ObamaCare.

The regulation from the IRS formally codifies the fine charged to people without insurance under the healthcare law’s individual mandate.

Under the law, most Americans must either be covered by health insurance or pay a penalty.

For the first year, the charge for not obtaining health insurance is $95 or 1 percent of household income. The penalty will increase, though, to $695 per person or 2.5 percent of household income in 2016 and then according to a cost-of-living formula for following years.

There are, however, a number of exemptions to the penalty.

For instance, Americans who qualify for Medicaid coverage but live in states that have not taken part in the law’s expanded Medicaid will not be charged. Neither will people who are temporarily uninsured while between jobs, those who are opposed to having insurance coverage for religious reasons or members of Indian tribes.