Didn’t Get Healthcare? Pay Up! 4 Million To Pay $4 Billion Obamacare Fines
Still don’t have health insurance? Oooh, you’re in trouble! We just finished talking about all of the people who did sign up for health insurance, but there are a bunch who still haven’t. You’re one of the four million excepted to cough up either $95 or 1 percent of your earnings for failing to abide by the Affordable Care Act mandate. In all, the Obama administration is expected to collect $4 billion in fines, MarketWatch reports.
That $4 billion estimate, provided by the Congressional Budget Office (CBO), has been slashed by $3 billion from the original projection of $7 billion in 2012, The Daily Caller says. The CBO also previously predicted that six million Americans would be subject to Obamacare fines — that number has now been decreased by two million.
But if you think about it, Uncle Sam is quite lenient — only 13 percent out of 30 million uninsured U.S. residents are being penalized due to exemptions granted for some reason or another. So who are the uninsured that get away scot-free from Obamacare fines? Bloomberg BusinessWeek paints the picture:
“Immigrants who are in the country illegally can’t get Medicaid or insurance subsidies and are exempt from the penalties. So are people who earn too little to file tax returns, and those who would have qualified for Medicaid but live in states that chose not to expand the insurance program for the poor. Others will get exemptions for hardship.”
On the other side of the spectrum, among those punished for being uninsured, most earn at least $99,000. According to Bloomberg, about one-third of the penalized four million are middle-and-high income households. “Because of their higher incomes, those people will pay 61 percent of the total penalty dollars.” Ouch! So why aren’t they getting health insurance? Since they’re too well-off qualify to for Obamacare subsidies, they have a bigger incentive to remain uninsured and just pay the $95.
But as time goes by, the Affordable Care Act fine will get skyrocket. By 2016, the uninsured will be charged $695 or 2.5 percent of their income.
Between 2016 and 2024, the Obamacare administration is expected to collect $46 billion in penalties — that’s an estimated $5 billion per year.
So far, the White House boasts that eight million Americans have signed up for health insurance.