If you don’t have insurance you are supposed to pay the penalty as part of your income tax filing. But if you don’t do that the IRS has limited power to collect making the penalty for a smart taxpayer meaningless.
The penalty will be treated like income tax due. While the IRS can garnish wages and file liens and levies to collect unpaid income taxes, the Affordable Care Act specifically prohibits those activities if people don’t pay the penalty. All the IRS can do is subtract the penalty from a tax refund … if you have a refund … hunt, hint. 🤑
Between the numerous exemptions and the limited collection procedures, the penalty is hardly the incentive to carry insurance that was claimed to be necessary to minimize adverse selection in the insurance policies.
Are you surprised that another element of the law isn’t what it claimed to be?