Here's What Happens If You Don't Sign Up For Obamacare (Sorting out the confusion)

Business Insider ^ | 07/02/2013 | MANDI WOODRUFF

[SeekAndFind]

We're months away from cutting the ribbon on the new online marketplace for health insurance, but the vast majority of uninsured Americans — the very people the Affordable Care Act is meant to help — still have no idea whether they'll be in the shopping mood or not.

According to a recent survey, nearly two-thirds of uninsured Americans say they haven't decided whether or not they'll buy health insurance by the Jan. 1, 2014 deadline (even though they'll have to pay a penalty if they don't).

Another 10% say they flat out won't buy in at all.

We understand the hesitation. Change is hard enough when it's simple to understand, let alone when it has to do with things like insurance, health care policy, and your own financial and personal well-being.

"People just don't understand how this is going to affect their wallet, what prices are going to be and what this could really cost them," said Laura Adams, InsuranceQuotes.com senior insurance analyst.

Here's what you need to know:

1) What is this new health care exchange all about?

The health care exchange (aka The Marketplace) is the centerpiece of the Affordable Care Act, an online marketplace where consumers can shop around for health care plans, just like auto insurance. All 50 states will have their own marketplaces, some of which will be run by the federal government and some of which will be run by individual states.

Delays notwithstanding, the marketplace opens on Oct. 1, 2013 and people will have until Jan 1, 2014 to pick up a policy if they want to escape penalties. There, you'll be able to choose from four different varieties of plans, platinum (highest benefits), gold, silver, and bronze (lowest benefits).

[Perdogg]

Nothing will happen to you if you don’t pay the fine.

[SeekAndFind]

RE: Nothing will happen to you if you don’t pay the fine.

Per Justice John Roberts, It’s not called a fine, it’s a TAX.
Won’t the IRS garnish your wages?

[turdhopper]

just check the box that says you are black. no penalty for you. yes it is so

[Paine in the Neck]

Nothing will happen to you if you don’t pay the fine.

That will depend on your political, cultural and racial affiliations.

[Orangedog]

Nothing will happen to you if you don’t pay the fine.

Yes, because the IRS never vaccums out bank account, levies tax liens on property or putpeople in cages for not paying them money they say someone owes to them.

[Perdogg]

No. In fact the laws states that the IRS can neither garnish your wages nor put a lien on you.

[SeekAndFind]

RE: No. In fact the laws states that the IRS can neither garnish your wages nor put a lien on you.

So, how the heck are they going to enforce this stupid law?

[steve86]

The IRS will withhold your refund but I don’t believe the law allows garnishment or other tactics. This could change.

[Dilbert San Diego]

I think that millions will choose not to sign up for Obamacare.

I also don’t know, but have wondered, how will the IRS enforce Obamacare, administer the fines, etc. for the 47% of people who don’t pay federal income tax? I know that some of that 47% still file income tax returns, but suppose you don’t file tax returns at all? Would you be in the IRS database in the first place, in order for them to levy the fine? What about all these people who work under the table?

The enforcement through the IRS makes a certain amount of sense if you can assume that everyone files income tax returns, but doesn’t make sense considering that huge numbers aren’t required to file.

Does anybody know if those who don’t pay taxes are now required to file a return?

[SeekAndFind]

RE: but suppose you don’t file tax returns at all?

Well, the IRS is supposed to go after you, right?

That’s what got Wesley Snipes in prison.

[1_Rain_Drop]

so if someone doesn’t receive a refund, then IRS can’t do anything?

[Perdogg]

Forbes

"The ACA bars the IRS from bringing a criminal enforcement case against someone who refuses to pay the non-insurance penalty. And it makes it very difficult, if not impossible, for it to enforce a tax lien. Law professors Jordan Barry and Bryan Camp have a nice piece in Tax Notes explaining it all."

[Tau Food]

We could force huge changes in our health care system if people would just quit going to doctors and hospitals. Just refuse to participate in the health care system until the government gets out of health care. That would force the government to end Obamacare, Medicare, Medicaid and all other government programs in the industry.

The problem is that we all tend to leave it to other people to boycott the system.

[Tau Food]

We could force huge changes in our health care system if people would just quit going to doctors and hospitals. Just refuse to participate in the health care system until the government gets out of health care. That would force the government to end Obamacare, Medicare, Medicaid and all other government programs in the industry.

The problem is that we all tend to leave it to other people to boycott the system.

[Perdogg]

You are correct my friend. The IRS cannot change the law, only Congress can do this.

[steve86]

The penalty is non-existent for someone with a low income. So for those who aren’t required to file the whole thing is a non-issue, generally.

[steve86]

OK, Next time someone t-bones me at an intersection I’ll tell the medics to put away the plasma bags and the spine splints, that I am participating in the boycott.

[ansel12]

What is the low income cut-off?

[Buckeye McFrog]

As I understand it, the only way the IRS can collect the fine is to withhold it from your tax refund. Adjust your W4 accordingly and you’ll never pay the fine.