Posted on 10/04/2013 2:57:21 PM PDT by Maelstorm
It may seem like a clever idea to save yourself cash by not purchasing health insurance, but with Obamacare kicking in, you’ll have penalties to pay, which could cost you big bucks in the long run.
Not only are you playing financial Russian roulette – you could be forking out tens of thousands or hundreds of thousands of dollars if you’re injured in an accident or become seriously ill – you’ll also have to pay a penalty to the federal government for flouting the law, costing you hundreds or thousands of dollars more.
A wiser decision if you’re uninsured is to start shopping on your state health exchange, which opened Tuesday — with glitches – as a key part of health care reform.
Money Talks News founder Stacy Johnson has information in the video below about the penalties you’ll face if you ignore the law. Check it out, then continue reading for more details about health reform.
It’s OK if you feel at a loss about the Affordable Care Act, which is also known as Obamacare. You’re not alone. A newly released survey by the Commonwealth Fund found that only 4 in 10 adults were aware of the health exchanges and the financial subsidies available to help cover costs when you buy insurance there, and only one-third of those without insurance were aware of the new way to shop for health insurance.
In the first quarter of the year, 46 million Americans didn’t have health insurance, according to the U.S. Centers for Disease Control and Prevention. The establishment of the state health exchanges, or insurance marketplaces, is designed to reduce the number of uninsured.
Who needs insurance?
Starting next year, almost everyone will need to be insured. You can purchase that insurance on your own or through the exchange, have it through your employer, or have it provided by government programs such as Medicare, Medicaid, the Children’s Health Insurance Program, TRICARE and veterans health insurance programs.
There are some limited exceptions, such as for those who earn a very low income or are members of certain religious groups, as shown in this graphic by the Kaiser Family Foundation.
While you can start shopping for insurance on a state exchange now, the policies don’t take effect until Jan. 1.
What if I don’t buy insurance?
If you skip the insurance, you’ll pay a penalty. For 2014 the fine is $95 for an individual or 1 percent of your income, whichever is greater, along with $47.50 per uninsured child, maxing out at $285 for the year.
But by 2016, an individual would pay $695 or 2.5 percent of your income.
The TurboTax website has a calculator to help you determine how high a penalty you’d pay.
Without insurance, you’d also face a double whammy. By 2016 you’d be forking over almost $700 to the federal government and having nothing to show for it, and still have to pay your own medical bills if you’re injured or become ill.
What will insurance cost?
The exchanges will sell four levels of policies – platinum, gold, silver and bronze. Bronze plans will have the lowest premiums, but cover only 60 percent of costs. Platinum, on the other hand, will have the highest premiums, but cover 90 percent of costs.
If you earn up to 400 percent of the federal poverty level ($45,960 for an individual and $94,200 for a family of four this year) you’ll be eligible for a subsidy, which will come in the form of a tax credit. Subsidies are based on your family size and your earnings. The less you earn, the higher the subsidy.
With the subsidies, more than half of Americans should be able to find health insurance for less than $100 a month, according to the U.S. Department of Health and Human Services, although you might choose to pay more.
There also will be caps on out-of-pocket costs. Typically, the maximum an individual will pay in co-payments and deductibles next year is $6,350, and a family’s costs will be capped at $12,700.
What if you delay?
Because you can’t be turned down for health insurance under the Affordable Care Act if you have a pre-existing condition, you might be tempted to dawdle and see if you actually get sick before purchasing insurance.
But that strategy could easily backfire.
You’ll only be able to buy insurance on your state health exchange through March 31, 2014. After that, the open enrollment period will run from Oct. 15 to Dec. 7 each year.
There are exceptions that allow you to purchase insurance on the exchange at any time of the year if you experience a life-changing event, such as moving to a new state, getting married, getting divorced, or having a baby.
While you can purchase insurance outside the exchange at any time, you won’t be eligible for a government subsidy, which is one of the cornerstones of health reform.
Bottom line: Ponying up for health insurance now can potentially save you from astronomical costs down the road.
what about overseas citizens who are insured by a foreign entity?
“but they can attach your wages and bank accounts.”
Actually, they can’t. Go ahead and research it.
The New York Times could not find ONE American citizen under the old medical system that was denied medical care. And they looked... liberals love a sob story - even when it’s a lie.
But here’s the good news for the New York Times. Under the new ObamaCare system they’ll find LOTS of people going broke and being denied care. Of course being the biased liberal little suck ups that they are - they’ll ignore the horrors that are to come...
Same for the LA Times, Washington Post, and Chicago Tribune...
The story they dreamed of - the one that would put the screws to someone like Bush - will now be handed to them for free... and they’ll turn away.
How do reporters at the New York Times sleep at night?
Not sure.
When I was a teenager I did not pay the IRS. They didn’t make a big deal about it. They just went to my bank account and withdrew the whole sum.
The bank informed me.
I understand exactly what you're saying. I'm self employed and what is shown as income on my tax return is a lot higher than what I actual have in income. However, let me disagree with you on one thing where I think you might be falling into the liberal trap of income discrimination.
Why should I have to pay more for anything because I make more money than someone else?
If I buy a car should I have to pay more for the same car than someone who makes less?
Why should my healthcare premium be higher?
No idea.
My initial thought when this all came out was there must be a huge insurance lobby in Washington - I mean come on - forcing the entire nation to buy your companies product? But the more I look at this thing the more I see exactly what you said: They are screwed. The Fedzilla is like Paulie in the movie “Goodfellas” ..You do business with us...You made no money this week? F you pay me! Nobody is buying your stuff? F you pay me. You had to pay out too much? F you pay me! I can’t possibly see how this can work unless everybody pays through the nose and there is no way in hell that is happening. Right off the bat money is going to be sucked right out of these insurance companies faster than cocaine to Oliver Stones nose and nothing is going to come in and the former Uncle Sam/IRS is going to want their cut and you know what’s going to happen? They are going to raise the fines through the roof. Buy or lose your house. Tyranny is here.
Does anyone know how and what to figure as your anticipated income? I have read different ways but I am not sure what number to use. After tax? And what happens if you figure it wrong? We are a few dollars away from subsidies if we us the magi number as some have suggested. I have to take my social security early just to pay this health tax.
They threatened to extensively review the adoption of his kids. And to take the kids away until the review was complete.
If you are a resident of a foreign country, then even though you are a citizen, then you are exempted from Obamacare, or so I understand.
And that’s a good thing for me, too, since I would be picked up by the medicare scam which does not cover any costs incurred outside the United States, i.o.w., for me a dead loss and waste of money. Like many things foisted on us by our Great Uncle in DC.
“The IRS cannot prosecute people who do not pay the fine.”
My blood just boils that I am FORCED to buy a product just because I was BORN in this country.
Bad enough I am forced to give Sand Ni$$er countries in the Middle East, who will turn on us in a nano-second, my hard earned dollars. Bad enough I am forced to pay for useless multi-generational Welfare parasites and leeches. Bad enough I am force to pay for food, education, health care, welfare for scum Criminal Trespassers entering from our Southern border.
This administration MUST be removed immediately and all the tentacles reaching down into the hundreds of government departments of this and that.
What happens to you if you don’t pay the fine?
We’re not buying Obamacrap and we’re certainly not paying the IRS one. single. penny of any fine/penalty/tax.
THIS is where WE draw our ‘red line’.
Agreed! There will only be a handful of people who buy it. Obamacare will be dead before the summer!
It was/is a solution to a problem that didn’t/doesn’t exist.
I HAVE DRAWN MY LINE IN THE SAND!
F U B O!
> you’ll also have to pay a penalty to the federal government for flouting the law, costing you hundreds or thousands of dollars more...
Wow I learn something new everyday. Silly me though the penalty was $95 a year, now it’s “hundreds of thousands of dollars”. What else is the twice unconstitutionally elected Kenyan foreign agent going to surprise me with next? That all people who do not buy Shariacare will be summarily executed by the will of Allah?
I think we can guess who is telling them to write those articles.
Enrollment must be a complete disaster.
take your money out of the bank! We have great insurance for now, but if we get to a point where we are forced to be on Obamacare we will revolt and take our money out! I’d like to see them try and come and take it!
It may be on your adjusted gross income the number that appears on your W-2 form did you google it to be sure?
The only way it is affordable is if you get subsidies or if you make a lot of money and have a lot of extra disposable iccome.
Our money has been out of the bank since the Europeans started seizing people’s bank accounts last year. It’s only a matter of time before that nonsense shows up here.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.