Four million Americans to pay insurance penalty because they failed to obtain coverage as required by PPACA

The CBO has released a report on the expected number of uninsured after the PPACA goes into effect in 2014 along with those expected to pay the penalty for failing to obtain insurance under the PPACA.

Isn’t it comforting to know that there will still be 21 million uninsured (but for whom someone provides health care) , about half as many as in 1993, and that we decided not to mandate coverage for illegal immigrants and Indians.  I guess if you can’t mandate legal citizenship it is hard to mandate compliance with other laws.

Beginning in 2014, the Patient Protection and Affordable Care Act (Public Law 111-148), in combination with the Health Care and the Education Reconciliation Act of 2010 (Public Law 111-152), requires most residents of the United States to obtain health insurance and imposes a financial penalty for being uninsured. That penalty will be the greater of a flat dollar amount per person that rises to $695 in 2016 and is indexed by inflation thereafter (the penalty for children will be half that amount and an overall cap will apply to family payments) or a percentage of the household’s income that rises to 2.5 percent for 2016 and subsequent years (also subject to a cap).

The Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation (JCT) have estimated that about 21 million nonelderly residents will be uninsured in 2016, but the majority of them will not be subject to the penalty. Unauthorized immigrants, for example, are exempted from the mandate to obtain health insurance. Others will be subject to the mandate but exempted from the penalty—for example, because they will have income low enough that they are not required to file an income tax return, because they are members of Indian tribes, or because the premium they would have to pay would exceed a specified share of their income (initially 8 percent in 2014 and indexed over time). Individuals may also be granted waivers from the penalty because of hardship and may be exempted from the mandate on the basis of their religious beliefs.

3 comments

  1. You seem to have a really serious bee in your bonnet about this topic. What would YOU propose to fix your perceived problems with Health Care including PPACA, TRICARE, MEDICARE, MEDICAID? You haven’t posted about VA Health Care, so what do you think about that?

    Please propose a solution or solutions.

    Like

    1. Of it’s health care you are talking about I do have a real interest having managed health benefit plans for over 45 years. Many of my thoughts and ideas to deal with the problems of cost and quality are already on my blog

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s