Health Law Tax Penalty? I’ll Take It, Millions Say

New York Times ^ | OCT. 26, 2016 | ROBERT PEAR

[nickcarraway]

The architects of the Affordable Care Act thought they had a blunt instrument to force people — even young and healthy ones — to buy insurance through the law’s online marketplaces: a tax penalty for those who remain uninsured.

It has not worked all that well, and that is at least partly to blame for soaring premiums next year on some of the health law’s insurance exchanges.

The full weight of the penalty will not be felt until April, when those who have avoided buying insurance will face penalties of around $700 a person or more. But even then that might not be enough: For the young and healthy who are badly needed to make the exchanges work, it is sometimes cheaper to pay the Internal Revenue Service than an insurance company charging large premiums, with huge deductibles.

“In my experience, the penalty has not been large enough to motivate people to sign up for insurance,” said Christine Speidel, a tax lawyer at Vermont Legal Aid.

Some people do sign up, especially those with low incomes who receive the most generous subsidies, Ms. Speidel said. But others, she said, find that they cannot afford insurance, even with subsidies, so “they grudgingly take the penalty.”

The I.R.S. says that 8.1 million returns included penalty payments for people who went without insurance in 2014, the first year in which most people were required to have coverage. A preliminary report on the latest tax-filing season, tabulating data through April, said that 5.6 million returns included penalties averaging $442 a return for people uninsured in 2015.

With the health law’s fourth open-enrollment season beginning Tuesday, consumers are anxiously weighing their options.

[arthurus]

My doctor complains about all the resources and time required to keep up with the new records requirements. And if someone up the line questions something it multiplies all that. Insurance is a problem because of government support and regulation of insurance. Medical insurance today is NOT insurance. It is a prepaid medical plan that increases costs because that is a whole nother layer of bureaucrats whose livings the consumer is providing. They are "private sector" but still have the instincts of bureaucrats and are bureaucrats.

[Terry Mross]

Most of those who will get nailed with a tax penalty are those you hear exclaiming “I’m getting $300 back this year!” They think the government is giving them money. It excites the hell out of them.

[AbolishCSEU]

They’ll outlaw that next if Hitlery gets in. . .