Case 3: You and your family do not have an insurance plan AND do not qualify through an employer. Case 3a: You earn below 88k for a family of four. Outcome option one: You buy a heavily subsidized private plan. Can switch anytime. Outcome option two: You do not get a plan. You pay the 1% income "tax" penalty AND RETAIN THE PRIVILEGE of jumping into the healthcare system anytime. You cannot be denied.