The state Department of Revenue plans to hike the 2011 penalty by about 9 percent for residents who are able to afford health insurance but fail to buy it. Taxpayers ages 18 to 26 whose income exceeds $32,496 will see the penalty increase to $864, up from $792. For those ages 27 and older whose income exceeds $32,496, the penalty will rise to $1,212 annually, up from $1,116. The fee, adjusted annually, doubles if two parents are in the family.