Posted on 12/09/2015 10:32:48 AM PST by Red Badger
The stick's getting a lot bigger — but it's not clear that many more people will choose the carrot as a result.
Households that opt to go without health insurance in 2016 are set to get hit with an average Obamacare fine of $969.
That is 47 percent higher than the average $661 penalty per uninsured household for this year, a new analysis by the Kaiser Family Foundation revealed Wednesday.
And households without insurance that earn too much to qualify for financial aid to buy Obamacare plans will pay an even larger fine for 2016 — an average of $1,450, versus the average of $1,177 for 2015.
Uninsured households that would qualify for Obamacare subsidies to help pay for coverage face an average fine of $738 — nearly double the $389 average for this year.
"It's a substantial increase," said Larry Levitt, senior vice president at the Kaiser Family Foundation, about the higher average fines.
The Kaiser analysis also found that 3.5 million uninsured people could buy coverage with a $0 monthly premium, or plans that would still cost less annually than what their fine would be for not having insurance, Kaiser's report said.
But 7.1 million people who are currently uninsured would pay more money if they bought the least-expensive health insurance plans available during the current open enrollment season than they would if they just paid the penalty, Kaiser said.
The report underscores what Kaiser called "a key area of uncertainty": The extent to which higher Obamacare penalties will prod uninsured people to sign up for coverage. More sign-ups in turn could strengthen the financial situation of health plans being sold on government-run exchanges. Open enrollment in Obamacare plans is going on now, and will end Jan. 31.
In an effort to boost sign-ups this season, Obama administration officials have been highlighting the financial aid for which most customers of government-run health exchanges qualify. The aid is designed to help them pay their monthly premiums.
"After financial assistance, 7 out of 10 people can find plans with premiums of less than $75 per month," Kevin Counihan, CEO of the federal Obamacare exchange HealthCare.gov, wrote in a blog post Tuesday.
Counihan and other officials have been pointing out that Obamacare penalties for going without insurance are rising this year. But it's not clear, as yet, whether that message is being heard by the uninsured.
"It's not top of the mind for most people," Levitt said.
"The penalty is only effective if people know about it," said Levitt. "If people go on HealthCare.gov now, they can find out how much the insurance costs them. But it's less obvious what the penalty is for remaining uncovered."
The penalty for not having health coverage in 2015 is the higher of $325 per adult, or 2 percent of adjusted household income. People who didn't have coverage this year, and who did not qualify for an exemption from the fine, will pay the penalty when they file their income tax returns in early 2016.
The penalty is set to rise in 2016 to the higher of $695 per adult, or 2.5 percent of household income. But, again, the penalty will come due only during the 2016 tax filing season, which begins in early 2017.
I thought the Supreme Court said it was a tax?
During the General, we’ll talk about this... and reap middle class voters forever...
Mine went up, but not as bad as my co-worker—61%!!! She’s in tears. There will be no Christmas presents for this woman’s family this year.
It’s a fine tax......................
Mine will cost $10,000 for the year, at the lowest ‘Bronze’ plan rate from BCBS, AND the local Medical Center here WON’T ACCEPT IT!
I don’t blame the med center, I blame the bastards in DC...............
This insanity needs to stop! Obama is getting his boiling pot with a tight lid on, and we’re going to explode!! Which is what he wants, but I say, let’s give him that fight!
I think the legal term is "John (Effing) Roberts' blackmail payment"
did she vote for him?
The total penalty for voting for Obama.....priceless.
I’m going to have a ‘gap’ in coverage for 9 months to a year, as I’m retiring but am too young for Medicaid and we’re not getting married for a while.
I’ll be sure to let you all know how it goes.
Man, I wish I could just find/have a catastrophic policy; I can handle the lesser stuff!
Anyone have any ideas? Of course, my choice is for them to have to come and FIND me. No ‘income’ no reason to file taxes, Right? ;)
Only with the right nominee.
"We need, as a nation, to reexamine the single-payer plan..."(The U.S.) will 'have to improve on the prototype'." - Donald Trump, "The America We Deserve"
I’ve taken the easy way out. We have no insurance. And we don’t get a refund - which is the only way they can take it. I just hope a republican wins in w016 and the mandate is gutted. The 8% rule helps a lot.
reparations
Just think, BEFORE ObozoCare, my health insurance was free. My employer provided it all as a benefit. Now, they can no longer afford to pay for it.............................and neither can I.....................
“The stick’s getting a lot bigger but it’s not clear that many more people will choose the carrot as a result.”
I’m confused. Which one is the stick and which one is the carrot?
I remember 0bama saying “If you make less than $250,000 a year yo taxes are not goin up one dime.” He was correct. People making less than $250,000 per year will pay tax increases that are a lot more than one dime.
GOOD QUESTION!..........................
We’re almost at the two year gap point. Saved about 26,000 after tax dollars over two years. That’s more than our mortgage, car payment utilities and real estate taxes combined. It’s a lifestyle changer.
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