Q: How did "Obamacare" wind up in the tax bill?
A: The Senate version repeals the Affordable Care Act's tax
penalties on people who don't have health insurance. That would
result in government savings from fewer consumers applying for
taxpayer-subsidized coverage, giving GOP tax writers nearly $320
billion over 10 years to help pay for tax cuts.
What's more, repealing the fines would deal a blow to the
Obama-era health law after a more ambitious Republican takedown
collapsed earlier this year.
Q: Those fines have been very unpopular, so how could repealing
them undermine the health law? Other parts of the ACA will remain on
the books.
A: Premiums will go up, and that's never popular. The fines were
meant to nudge healthy people to get covered. Because insurance
markets work by pooling risks, premiums from healthy people subsidize
care for the sick.
Without some arm-twisting to get covered, some healthy people will
stay out of the pool. That's likely to translate to a 10 percent
increase in premiums for those left behind, people more likely to
have health problems and need comprehensive coverage, says the
Congressional Budget Office.
The CBO also estimated that 13 million more people would be
uninsured in 2027 without the penalties. If they have a serious
accident or illness, uninsured people get slammed with big bills, and
taxpayers wind up indirectly subsidizing the cost.
Q: So just taking away an unpopular penalty would destabilize the
health insurance law?
A: Repealing the fines is part of a broader context. -
Q&A: Tax bill impacts on health law coverage and Medicare, Newser, 12/05/2017
Link to the entire article appears below:
http://www.newser.com/article/4729348d72844801ae4686e91afbb1fb/qa-tax-bill-impacts-on-health-law-coverage-and-medicare.html
‘Hours after taking the oath of office, President Donald Trump followed up on his campaign pledge to try to start chipping away at Obamacare, and curb federal regulations.
Trump signed an executive order on Friday evening from the Oval Office “to ease the burden of Obamacare as we transition to repeal and replace,” White House press secretary Sean Spicer told reporters Friday.’
‘“Potentially the biggest effect of this order could be widespread waivers from the individual mandate,” Larry Levitt, a senior vice president at the Kaiser Family Foundation, told The Washington Post. Currently, individuals who do not have health insurance and do not qualify for an exemption must pay a $695 annual fee or up to 2.5 percent of annual household income.
“They’re very aware of the fact that the first job is to prevent the Affordable Care Act from doing more damage than it’s already done,” says Ed Haislmaier, a senior research fellow in health care policy at The Heritage Foundation. “As we saw with the premium increases in the fall, people who are buying individual or small employer coverage without a subsidy are getting hammered.”’ - Trump Signs Executive Order Curbing Obamacare, daily signal.com, 01/20/2017
Link to the entire article appears below:
http://dailysignal.com/2017/01/20/trump-signs-executive-order-curbing-obamacare/?utm_source=TDS_Email&utm_medium=email&utm_campaign=Top5&mkt_tok=eyJpIjoiWkdVM00yUXpNbVUwT0RZNSIsInQiOiJ6REZKMWNcLytNMm8zc2lXa29kMXdcL1NRYXVGbVQ5RGtpdGxcL3p3d1JPc1ZyRkpQcUw1RE4welB5bVZMS2tQUkU3Y01hUzRseVhBSVRDYUpkNjlOUTZkU2N5eXZXVjNkSUVmOXg3YXdwbFc0SFwvRUpoWk9OcEtGN3VDVlVuaFNicHhtWDIyY2tiMjBCbG84MnBacjBUUEF3PT0ifQ%3D%3D
“As millions of Americans scramble to file their tax returns, many are shocked by the full cost of ObamaCare’s individual mandate.
“Those who failed to obtain minimum essential health insurance coverage last year will have had to send the Internal Revenue Service (IRS) a check for $1,130, on average,” Doug Holtz-Eakin, former director of the Congressional Budget Office, testified today before a congressional hearing.
An estimated 6.3 million people will be required to pay a penalty this year because they didn’t buy qualifying health insurance in 2014, Holtz-Eakin testified. Another 30 million people didn’t buy the mandated coverage either but won’t have to pay the penalty because of the myriad exemptions the Obama administration is allowing, with or without legal justification.
Holtz-Eakin, now president of the American Action Forum, based his calculations on the number of people who will pay the penalty and the average value of the penalty, using demographic information from the American Community Survey and enrollment statistics from the U.S. Department of Health and Human Services.
“In reality, the individual mandate has been less of a mandate and more of a suggestion,” he told the House Ways and Means Health Subcommittee, chaired by Rep. Kevin Brady, R-TX.” - Average Fine For Noncompliance With ObamaCare Is $1130, Expert Testifies, Forbes, 04/14/2015
Link to the entire article appears below:
http://www.forbes.com/sites/gracemarieturner/2015/04/14/average-fine-for-noncompliance-with-obamacare-is-1130-expert-testifies/?mc_cid=653e60c898&mc_eid=2b1a7a9dca
“NEW YORK (MainStreet) — The fee for not having health insurance coverage in 2015 will increase to 2% of your annual household income or up to $975 per family, $325 per adult and $162.50 for each child under the age of 18 years, whichever is higher. That's twice as much as the maximum penalty in 2014, when the fee was 1% of your annual household income, or $95.00 per adult and $47.50 per child under the age of 18 years.
The maximum penalty per family in 2014 looks like a bargain now at $285, a hike of nearly 250%. The fee will continue to get stiffer in 2016 when it will cost families 2.5% of their annual household income or $695 per adult and $347.50 per child under age 18, the federal government's way of incentivizing uninsured Americans to get health care coverage.
Whether through the incentive to avoid the penalties or the need to get health care coverage to protect their personal finances and have access to doctors and hospitals, as of February 22, 2015, nearly 11.7 million consumers had signed up for health insurance coverage in the government’s marketplace, according to a report released by the U.S. Department of Health and Human Services. More than half (55%) paid monthly premiums of $100 or less after tax credits, totaling $1,200 a year or less for coverage.
Despite the relative affordability of health insurance and a requirement to pay a stiff penalty for not having coverage, many Americans eschew Obamacare. According to a new analysis by Avalere Health, many Americans are still opting to go without health insurance coverage.” - The Penalty for Going Without Obamacare Soars Nearly 250% Over 2014 Fee, MSN Money, 04/08/2015
Link to the entire article appears below:
http://www.msn.com/en-us/money/insurance/the-penalty-for-going-without-obamacare-soars-nearly-250percent-over-2014-fee/ar-AAazVPp
“Several million people hit with new federal fines for going without health insurance will get a second chance to sign up starting Sunday, and that could ease the sting of rising penalties.
But, as the enrollment window reopens, it’s unclear how many know about the time-limited opportunity, let alone will take advantage of it.
Fines payable to the IRS are the stick behind the offer of taxpayer-subsidized private insurance under President Barack Obama’s health care law. Virtually everyone in the country is now required to have coverage through an employer or a government program, or by buying individual policies.
This is the first year fines are being collected from uninsured people the government deems able to afford coverage. Tax preparation company H&R Block says the penalty averages about $170 among its affected customers. It usually is deducted from a person’s tax refund.
Those penalized are mainly the kind of people the law was intended to help: low- and middle-income workers who do not have coverage on the job or are self-employed. Roughly 4 million people are expected to pay fines, according to congressional estimates. Many more will qualify for exemptions.”
“Penalties for being uninsured are going up this year to a minimum of $325 for the full 12 months. That’s a significant increase from the $95 minimum in 2014.
The new sign-up opportunity runs through April 30. To qualify, individuals have to certify to the government that they meet certain conditions, including:
– They did not know or understand that they were legally required to have coverage until after open enrollment officially ended Feb. 15.
– They owed a penalty for being uninsured in 2014.
Those requirements are for the 37 states served by the federal HealthCare.gov website. States running their own insurance exchanges may have different rules and deadlines. Penalties for 2014 are not refundable.” - Cool reception for new ACA sign-up window, Albuquerque Journal, 03/15/2015
Link to the entire article appears below:
http://www.abqjournal.com/555733/news/cool-reception-for-new-aca-signup-window.html
“Some 3 million to 6 million Americans will have to pay an Obamacare tax penalty for not having health insurance last year, Treasury officials said Wednesday. It's the first time they have given estimates for how many people will be subject to a fine.
The penalty is $95, or 1% of income above a certain threshold (roughly $20,000 for a couple). So you could end up owing the IRS a lot of money.
Take a married couple with $100,000 in income - their bill comes to $797, according to the Tax Policy Center ACA penalty calculator.
The penalty for remaining uninsured rises to the larger of $325 or 2% of income in 2015.”
“Finally, between 4.5 million and 7.5 million taxpayers received subsidies for insurance premiums when they signed up for coverage on Obamacare exchanges. They will have to use Form 8962 to reconcile their actual 2014 income with the amount they estimated when they applied for a policy in late 2013 or early 2014.
Those who underestimated their income either will receive smaller tax refunds or will owe the IRS money.
Treasury officials declined to forecast how many people may be in this situation. But H&R Block projects 3.4 million taxpayers will have to pay back part of their premiums.” - Millions to owe Obamacare tax penalty, CNN Money, 01/28/2015
Link to the entire article appears below:
http://money.cnn.com/2015/01/28/news/economy/obamacare-tax-penalty/
“Being uninsured in America will cost you more in 2015.
It's the first year all taxpayers have to report to the Internal Revenue Service whether they had health insurance for the previous year, as required under President Barack Obama's law. Those who were uninsured face fines, unless they qualify for one of about 30 exemptions, most of which involve financial hardships.”
“In 2015, all taxpayers have to report to the IRS on their health insurance status the previous year. Most will check a box. It's also when the IRS starts collecting fines from some uninsured people, and deciding if others qualify for exemptions.
What many people don't realize is that the penalties go up significantly in 2015. Only 3 percent of uninsured people know what the fine for 2015 will be, according to a recent poll by the nonpartisan Kaiser Family Foundation.
Figuring out your potential exposure if you're uninsured isn't simple.
For 2014, the fine is the greater of $95 per person or 1 percent of household income above the threshold for filing taxes. It will jump in 2015 to the greater of 2 percent of income or $325. By 2016, the average fine will be about $1,100, based on government figures.” - Being uninsured in America will cost you more, Yahoo Finance, 12/29/2014
Link to the entire article appears below:
http://finance.yahoo.com/news/being-uninsured-america-cost-more-163436765.html
Updated 01/09/2015:
Chart of the Week: How Much Will Obamacare Fines Continue to Rise? - dailysignal.com, 01/08/2015
http://dailysignal.com/2015/01/08/chart-week-much-will-obamacare-fines-continue-rise/
“Internet heavyweight Matt Drudge has angered the White House for saying that he’s just paid his Obamacare tax for 2014 in his quarterly estimates.
On Twitter, he declared in a March 21 post, "Just paid the Obamacare penalty for not 'getting covered'...I'M CALLING IT A LIBERTY TAX!"
According to Investors.com, 22 minutes later, White House spokesman Jesse Lee hit back with a tweet saying, "Flat lie. No fee for previous year."
Drudge, who runs the online Drudge Report, is attempting to make the point that the owners of small businesses like him have to pay their estimated quarterly taxes during 2014 with any outstanding taxes being paid by April 15, 2015.
In his case, Drudge has decided to opt out of the individual mandate that he sign up for health insurance or pay the penalty, or tax, for not enrolling. Drudge is paying the tax now instead of waiting for April of next year when he could pay an IRS fine for not filling out his quarterly taxes correctly.
His tweet was also attacked by The Washington Post’s Plum Line blog. "Drudge proudly tells the world he paid the penalty for not having health coverage, which he has termed the 'liberty tax'," according to the blog. "Which is odd, because no one has to pay the penalty until they file their 2014 tax returns in April 2015."
Drudge followed up his message with another tweet, saying, "Dazed team Obama media reporters think Opt-Out tax 'year away'? Not for small businesses that file Qtr estimates. We're there now, baby."
Investors.com quoted the IRS website to prove that Drudge was correct in paying his Obamacare "opt-out" tax this year. "As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly," the IRS site says.
And the report noted that the IRS form (1040-ES) for estimating quarterly taxes specifically recommends adding the mandate penalty to line 12 for "other taxes" — to pay before the first quarterly deadline of April 15.” - Drudge Angers White House by Paying Obamacare Penalty Early, Newsmax, 03/25/2014.
"As a self-employed individual, generally you are required to file an annual return and pay estimated tax quarterly," the IRS website states.
IRS form (1040-ES) for estimating quarterly taxes specifically recommends adding the mandate penalty to line 12 for "other taxes" — to pay before the first quarterly deadline of April 15.
"It is true that thousands of small businesses will be forced to pay ObamaCare taxes quarterly in 2014," a Senate Budget Committee aide told Breitbart News on Friday afternoon." - Drudge Exposes Another ObamaCare Lie, Pays 'Liberty Tax', Investors Business Daily, 03/24/2014
Link to the entire articles appears below:
http://www.newsmax.com/Newsfront/Matt-Drudge-Obamacare-healthcare-penalty/2014/03/25/id/561523/?ns_mail_uid=11826812&ns_mail_job=1561657_03252014&promo_code=16EAF-1
http://news.investors.com/ibd-editorials-obama-care/032414-694425-matt-drudge-pays-obamacare-liberty-tax.htm
