Something awesome and something I don't get about "Obamacare"

[Snake Alchemist]

Just found out that as of 2014 they can't charge extra for pre-existing conditions!!!!

So for someone like me it is GREAT! But what I don't understand is why would I not just pay the penalty until I need insurance, and then get insurance when needed. It looks like it will be cheaper than actually carrying insurance full-time. Unless I'm underestimating the cost of the penalty.

[Cleita]

1. Not that I'm an expert, but I believe the penalty is

a way of making you pay no matter what. I think we have something similar in our mandated car insurance laws in California. In this case you have to guarantee a bond for a large amount of money in lieu of buying insurance, or it was like that at one time. I haven't kept up with the law. However, it means you have to pay something into it.

[Enrique]

2. they can adjust the penalty

those calculations are incredibly complex, they will probably have to be continuously fine tuning it based on experience.

[Snake Alchemist]

4. I'll have to look into it.

Obviously, if it is more than carrying insurance then there is no point. But if there is less than there may be some point to paying the penalty. Also I wonder if you can upgrade insurance coverage midstream with no penalty.

[lumberjack_jeff]

3. That is exactly what many people will do.

For those who make too much to be eligible for a subsidy, the penalty is less than the cost of insurance.

[Snake Alchemist]

5. It will make sense for me if it's less.

I'd rather give as little money to those companies as possible.

[1StrongBlackMan]

12. I beg to differ ...

because MOST people working (80+%), are unaffected by the mandate because they already receive health insurance through their employer.

Unless you're suggesting that people will drop their employer-provided insurance in favor of paying the fee/fine.

[lumberjack_jeff]

13. I said many, not most.

Many of the uninsured by choice will remain uninsured because the penalty is cheaper.

[DJ13]

6. Well, they could set up the coverage like Medicare

Where you can only enroll during a short period at the end of the year.

That would prevent using it as a form of catastrophic insurance.

[Snake Alchemist]

7. Is that in the currect bill though? I don't think that is the case and I need to know if it is. nt

[DJ13]

9. I dont know, but probably not

I was giving a potential remedy I could see the government taking down the line to prevent that loophole from being used.

[Demit]

8. The whole idea of insurance is that you pay for coverage IN CASE you need it.

It's not saying "Okay, I have a claim now. I'm ready to join up now so that you can pay my claim." Sheesh.

[Snake Alchemist]

11. Then we need to change the idea of insurance. nt

[Walk away]

10. Another provision of Obama Care is that companies can only make a 15% profit so...

it might seem as though not paying into the system is mostly just screwing your fellow Americans.

[firehorse]

14. the penalty is a percentage of your gross income

heard this on WNYC this morning, but I forget the percentage, and I don't know if this includes investment income: dividends, mutual funds, etc.