WASHINGTON (AP) — The math is harsh: The federal penalty for having no health insurance is set to jump to $695, and the Obama administration is being urged to highlight that cold fact to help drive its new pitch for health law sign-ups.
That means the 2016 sign-up season starting Nov. 1 could see penalties become a bigger focus to motivate millions of people who have remained eligible for coverage, but uninsured. They're said to be more skeptical about the value of health insurance.
Until now, health overhaul supporters have stressed the benefits of getting covered: taxpayer subsidies that pay roughly 70 percent of the monthly premium, financial protection against sudden illness or an accident, and access to regular preventive and follow-up medical care.
But in 2016, the penalty for being uninsured will rise to the greater of either — $695 or 2.5 percent of taxable income — for someone who goes without coverage for a full 12 months. This year the comparable numbers are $325 or 2 percent of income. While the increase isn't good news, it does create a marketing opportunity.
The numbers are pretty clear. With subsidized customers now putting in an average of about $100 a month of their own money, a consumer would be able to get six months or more of coverage for $695, instead of owing that amount to the IRS as a tax penalty. Backers of the law are urging the administration to hammer that home.
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6 comments:
It's what they don't tell you, like you have to pay a deductible of $3,000 - $5,000 BEFORE your insurance will pay any thing! In this economy the average working stiff doesn't even have a car worth that much! So in the articles example you would have to pay about $6,000 before your insurance will cover you!
The penalty applies if someone goes 12 full months uninsured.
Pay for one month, then drop it. A year later, repeat.
This is the biggest legal con job I have ever seen. 9:18 is so correct. The only ones getting ahead here is the government and the Insurance Companies. If you are going to have to pay that large a deductible before the insurance company takes care of it why not save $650.00 even though that takes food out of a lot of peoples mouths. The people of America better wake up and vote out all these legal convicts in government that is having their pockets lined by all of these Insurance Companies. Just got my vehicle insurance premium, mine you never have ever made a claim. Went up 16% probably to pay for someone else. This is not right.
I was just notified that mandatory insurance policy with BSBS will go from 625/month to 950/month.
I did not have 625/month which put me in poverty and is more than my car payment and my mortgage payment.
There is no way I can afford that which now makes my healthcare $12000/year with a deductible. So as 9:18 said my only choice is to go to the high deductible plan - in summary it will cost me over $10,000 a year no matter what I do, so that paltry penalty will be absolutely nothing.
An oh, this cost is 25% of what I make. I make $46K which puts me in the NO REBATE zone, therefore the government is now forcing me to use 25% of my income to be covered.
Or I can buy a $6,000 policy and NOT USE it because I can not afford the $5,000 deductible. What most of you do not realize is that any RX (drugs) are included in your deductible - you can not escape that sucking sound of the government and insurance company sucking the money right out of your pocket
All you have to do is claim you are a Muslim and you are exempt from the law. This is written in the law and no one seemed to care. Do you care now? Muslims receive free health care.
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