Feds Say 7.5M Paid An Average Penalty Of $200 For Not Having Health Insurance

[Duaine]

About 7.5 million Americans paid an average penalty of $200 for not having health insurance in 2014 — the first year most Americans were required to have coverage under the Affordable Care Act, the Internal Revenue Service said Tuesday.

By contrast, 76 percent of taxpayers checked a box indicating they had qualifying insurance coverage all year. Counting another 7 million dependents who were not required to report their coverage but also filed returns, the proportion rises to 81 percent, the IRS said.

More than 5 million taxpayers did not check the box on their tax form saying they had coverage, claim a health care coverage exemption, or pay a penalty. “We are analyzing these cases to determine their status,” the government said.

Feds Say 7.5M Paid An Average Penalty Of $200 For Not Having Health Insurance | Kaiser Health News

 

[RayNY]

So they're analyzing the status of those who didn't check the box, in case they can save the penalty, but aren't verifying all the people who checked the box?

No wonder they're collecting far less penalty than estimated...

 

[AllenChicago]

Word's getting around amongst the people who earn 100%-250% of FPL (up to approx. $23,500), that even with the 2% Penalty-Tax this year, it's cheaper to pay that penalty than it is to buy highly subsidized health insurance, because the first $11,600 of income is excluded from the penalty-tax calculation.

The Obama administration can't understand why an alarming number of individuals are dropping their "cheap" $50 - $100 a month Cadillac Silver plans. They should ask Jonathan Gruber. I wonder how he would explain it?

These leeches will go back to using the Emergency Room as an entry point for receiving their free medical care.

The shared responsibility penalty-tax needs to be 4% or greater, IMO.
ac

 

[TN_agent]

Word's getting around amongst the people who earn 100%-250% of FPL (up to approx. $23,500), that even with the 2% Penalty-Tax this year, it's cheaper to pay that penalty than it is to buy highly subsidized health insurance, because the first $11,600 of income is excluded from the penalty-tax calculation.

The Obama administration can't understand why an alarming number of individuals are dropping their "cheap" $50 - $100 a month Cadillac Silver plans. They should ask Jonathan Gruber. I wonder how he would explain it?

These leeches will go back to using the Emergency Room as an entry point for receiving their free medical care.

The shared responsibility penalty-tax needs to be 4% or greater, IMO.
ac

Agreed. Many of my 400%+ people are taking the penalty next year. Sucks for me. They can't afford the $14,000 a year for family coverage with the huge rate increase, they will just pay the 2k (give or take) to uncle sam, get short term at a fraction of the cost (and commission), and pray they don't come down with something serious.

 

[HoosierLife]

You mean there's some leech paying $50 a month for their coverage??

 

[sman]

You mean there's some leech paying $50 a month for their coverage??

And probably complaining about how high the premium is.

 

[somarco]

Sign-up season for President Barack Obama's health care law doesn't start for another couple of months, but the next few days are crucial for hundreds of thousands of customers at risk of losing financial aid when they renew coverage for 2016.

Call them tardy tax filers: an estimated 1.8 million households that got subsidies for their premiums last year but failed to file a 2014 tax return as required by the law, or left out key IRS paperwork.

Because of coordination issues between the IRS and marketplaces like HealthCare.gov, consumers who keep procrastinating into the fall are taking chances with their financial aid, according to insurers and the tax agency. That means, for example, that someone who's been paying a monthly premium of $90 could suddenly get hit with a bill for $360.

Tardy tax filers risk loss of health care subsidies

 

[sman]

Sign-up season for President Barack Obama's health care law doesn't start for another couple of months, but the next few days are crucial for hundreds of thousands of customers at risk of losing financial aid when they renew coverage for 2016.

Call them tardy tax filers: an estimated 1.8 million households that got subsidies for their premiums last year but failed to file a 2014 tax return as required by the law, or left out key IRS paperwork.

Because of coordination issues between the IRS and marketplaces like HealthCare.gov, consumers who keep procrastinating into the fall are taking chances with their financial aid, according to insurers and the tax agency. That means, for example, that someone who's been paying a monthly premium of $90 could suddenly get hit with a bill for $360.

Tardy tax filers risk loss of health care subsidies

And what are the odds of some of those who file right at the deadline losing their subsidy even though they met the deadline? Nah, that could never happen.

 

[somarco]

Read something in AJC earlier today about a backup plan to bail out the deadbeats. No surprise here. No consequences for stupidity.

 

[AllenChicago]

That means, for example, that someone who's been paying a monthly premium of $90 could suddenly get hit with a bill for $360.

Tardy tax filers risk loss of health care subsidies

It really gets screwy if the insured loses (for any reason) both their Tax Credit and Their Cost-Sharing subsidy. I had a client who lost the subsidy, yet continued to pay the full premium, because the wife was pregnant. She had already met the $1,500 Silver CSR OOP. Suddenly she started getting bills again because the $1,500 OOP had become $6,300 OOP. There was no notification that this was going to, or had occurred.

In the not too distant future, we'll be looking back at all this bullchit and shaking our heads in amazement at how complicated ObamaScrew was.