If you don't have health insurance it's probably for two main reasons. The first being that you can't afford it or two, you're a healthy young person who doesn't feel like they need it at this point in life. Others may not have health insurance due to lack of employer coverage. Regardless, under new ObamaCare rules lacking health insurance results in a large ObamaCare fine/tax, something that forces people to pay for something they can't afford and young people to pay for something they don't need. Not to mention, when people are paying a fine and not receiving healthcare insurance in return, they're simply throwing money into a black hole that could have been saved to eventually purchase a plan.
Now, the Congressional Budget Office is out with new numbers showing an additional two million people will opt to pay the fine instead of purchasing healthcare. This brings to total number of people to six million.
Under the law, Americans must be insured starting in 2014 or pay a penalty assessed on their tax returns.
Shortly after the legislation passed in 2010, the Congressional Budget Office, working alongside the Joint Committee on Taxation, estimated that in 2016 roughly four million people a year would opt to pay the penalty instead of getting coverage. On Wednesday, the CBO and JCT revised that figure up to six million, citing legislation passed since 2010 as well as the weaker economic outlook.
Of those people who opt for the penalty, 10% are projected to be below the federal poverty level for 2016, which the CBO and JCT estimate will stand at about $12,000 for an individual or $24,600 for a family of four.
In 2014, the penalty will be no more than $285 per family, or 1% of income, whichever is greater. In 2015, the cap rises to $975, or 2% of income. And by 2016, it reaches $2,085 per family, or 2.5% of income, whichever is greater.
The dollar amounts for a single adult would be $95, $325 and $695 during that same time period.
But these aren't just individuals choosing to simply pay the fine instead of purchasing insurance, employers across the country are choosing to pay the fine instead of providing employer based health insurance because it's cheaper under the new ObamaCare system.
A report from the House Ways and Means Committee finds that 71 of the nation’s top 100 companies would find it far more economical to drop their health care plans and simply pay the penalty for not complying with the Obamacare employer insurance mandate.
The report, published May 1, surveyed 71 of the 100 companies in the Fortune 100 list of large corporations and finds that all of them would save considerable amounts of money by dropping their health care coverage instead of complying with the Obamacare insurance mandate.
“According to data provided by the 71 Fortune 100 companies that responded to the inquiry, they could save a total of $28.6 billion in 2014 alone if they stopped offering health insurance to their U.S. employees and instead paid the employer mandate penalty for not doing so,” the report said.
Finally, let's not forget the most recent projection from the IRS showing the cheapest plans costing $20,000 per family under ObamaCare.
In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year.
Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS.
The IRS's assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.
Hey, remember when Obama said ObamaCare would provide "affordable" healthcare?
"If you're one of the more than $250 million Americans who already have health insurance, you will keep your health insurance. This law will only make it more secure and more affordable."