ObamaCare enrollment spikes ahead of increase in penalty

[nitpicker]

http://thehill.com/healthcare/264071-obamacare-enrollment-spikes-ahead-of-penalty-incresae

ObamaCare enrollment spikes ahead of increase in penalty

By Peter Sullivan - 12/23/15 05:25 PM EST


People who don’t buy health insurance next year will face a penalty of at least $695, a price that is being linked to a jump in ObamaCare sign-ups, particularly among people under 35 years old.

The administration said Tuesday that 8.2 million people have signed up so far, compared to 6.4 million at this point last year. That includes 2.1 million people under age 35 — nearly double the number of young people enrolled during the same period last year.


Administration officials touting the numbers have pounded home the message that ObamaCare coverage is affordable in explaining the rush of people joining the exchanges. Over and over, officials tout that more than 7 in 10 people can find a plan for $75 a month or less, with a government subsidy.

But some say the real reason for the jump may be the threat of a big penalty. Those who didn’t buy health insurance last year faced just a $325 fine or 2 percent of their income, which ever was greater. This year the fine is $695 or 2.5 percent of their income. (There are some exemptions for people who cannot afford coverage).

“Year 1 and 2 we got a lot of ‘I'm just going to pay the penalty,’ ” said Daniel Bouton, a “navigator” with the Community Council of Greater Dallas who helps people sign up. “Now they are saying that it is $695.”
(snip)

[still_one]

1. The penalty is enforced only if you file income tax. If 8% of your income is less than the premium

for the Bronze plan, you are not required to buy health insurance, and you will NOT be penalized. There are other exceptions which also allow people not to be penalized or buy insurance.

For those that criticize the mandate, if and when single payer becomes a reality, there will be a similar mandate, where the cost of single payer would be payed through taxes, except for those whose income is low enough that they don't have to pay taxes.

so while a reasonable argument can be made that the ACA doesn't go far enough, and we really need Single Payer, it needs to be pointed out that single payer will be paid through taxes for those whose income is above the poverty level. It isn't free, and everyone, whether they want it or not, would be covered under Single Payer, so it is a mandate also.

Social Security is a mandate through your social security taxes. Medicare is a mandate through your social security taxes.

So if there are those that are so upset by "THE MANDATE", then if they are consistent, the conclusion would be that they would also be against Single Payer, Social Security, and Medicare, and if that is the case perhaps their leanings are more libertarian and republican than they would like to admit.

Those with that perspective would also advocate for the healthcare system before the ACA, where uninsured were treated in the emergency room. A premium price to the taxpayers is paid for that service, it is inferior care, because its purpose is only for stabilization, not for preventive care. A large number of bankruptcies before the ACA were do to medical care for those who had inadequate insurance, or no insurance.

[djean111]

2. People, IMO, are more angry that we are mandated to purchase insurance from private for-profit

entities, and then still may not be able to afford health care. We are paying our social security taxes and Medicare premiums to the government.

Apples and oranges.

[still_one]

4. For progressives and most Democrats you are correct, but definitely not for republicans and

conservatives who have been trying to privatize social security and medicare for decades, and also to "phase" it out, which is why they keep proposing increasing the age for complete benefits, when just increasing the cap would solve the problem that isn't a problem for social security.

[hobbit709]

3. If you can't afford the coverage you certainly can't afford the penalty either.

[still_one]

5. The rules to exempt those from the mandate are the following

You won’t pay a penalty if:you are covered by your employer
you are covered by the government (Medicare, Medicaid, CHIP, TRICARE or the VA)
you already have purchased coverage that – at a minimum – meets the requirements for a Bronze plan under the ACA
your income is low enough that your share of premiums (after federal subsidies and employer contributions) would total more than 8 percent of your income (this is increasing to 8.05 percent for 2015)
your income is below the income tax filing threshold
You had a short gap in coverage during the year, that lasted no more than three months (if you’re uninsured for more than three months, the penalty is prorated)
you qualify for a religious exclusion

you are a member of a Native American tribe
you are an undocumented immigrant
you are in prison
People who enrolled near the end of the 2014 open enrollment window and had coverage effective May 1, 2014 are still exempt from the penalty as long as they maintained coverage the rest of the year, even if they had no coverage for the first four months of 2014

If your health plan was cancelled as a result of the ACA, and you don’t believe the new options available to you are affordable, you qualify for a hardship exemption and you’re also eligible to purchase a catastrophic plan regardless of your age.
If you qualify for a hardship exemption because your plan was cancelled in 2013 or is being cancelled in 2014, your exemption (and eligibility for a catastrophic plan) is valid through October 1, 2016.
You qualify for a hardship exemption

Because of these exemptions, and the subsidies provided based on income requirements approximately 1.4% of Americans would be subject to a tax for not purchasing health insurance.