One of the most controversial aspects of the new healthcare system, involves the income fines that are set to be imposed on those who don't carry active coverage in 2014. Since media coverage of this has been spotty at best, we wanted to go over some of the real numbers and facts behind the fines associated with Obamacare and the Affordable Care Act.
What are the fines for not having health insurance?
First, it's important to remember that these fines are very real, and will be coming directly from the government. They're not something imposed by your local health insurance agent, or even the major carriers. The penalty for the not buying a health insurance policy in 2014 has been set at 1% of a person's or family's annual income. So for example if you earn $75,000 per year and do not purchase a plan, you will end up being fined $750 the first year.
In 2015, this number jumps up to 2%, and then again up to 3% the following year in 2016. From everything we've heard, the fines will be capped at 3% of one's yearly income. So while that hypothetical $750 might not sound so bad, it could go as high as $2,250 based on three years of non-compliance. And that's if your income does not change at all.
How Will Healthcare Fines Be Imposed?
There's still some speculation on how Uncle Sam will go about collecting fines from those who don't carry active health coverage. The most likely scenario is that it will either be deducted from your federal return, or added to your taxes owed for the year in question. The likelihood that you would actually receive a bill, while possible, doesn't seem likely or realistically feasible.
And this is where we think things could get ugly. If you're expecting a $2,000 return on your income taxes--and are banking on that as part of your income--only to find that it's nearly cut in half, this is sure to ignite more animosity against the new healthcare system. Or worse, if you do your taxes and pay what you believe to be the full amount, only to learn a few months later that you now owe late fees on top of the added healthcare tax fine, this could end up making things exponentially worse for even the most responsible person.
Need More Information on Healthcare Fines?
We know that this is a very sensitive issue, and that most people (us included) are not big on the idea of being forced to buy anything. But if you have questions, we can help you get real answers. To speak to an agent for more information on fines, plans, subsidies or renewals, give Premier in Lisle a call at 800-369-0287. There are no fees for our services and you'll never have to worry about being pressured to buy anything… honest.