Wow. Didn't see this coming.
From
here.
Quote:
Individuals who fail to maintain minimum essential coverage in 2016 are subject to a penalty equal to the greater of: (1) 2.5 percent of household income in excess of the taxpayer’s household income for the taxable year over the threshold amount of income required for income tax return filing for that taxpayer under section 6012(a)(1);67 or (2) $695 per uninsured adult in the household. The fee for an uninsured individual under age 18 is one-half of the adult fee for an adult. The total household penalty may not exceed 300 percent of the per adult penalty ($2,085). The total annual household payment may not exceed the national average annual premium for bronze level health plan offered through the Exchange that year for the household size…
The penalty applies to any period the individual does not maintain minimum essential coverage and is determined monthly. The penalty is assessed through the Code and accounted for as an additional amount of Federal tax owed. However, it is not subject to the enforcement provisions of subtitle F of the Code. The use of liens and seizures otherwise authorized for collection of taxes does not apply to the collection of this penalty. Non-compliance with the personal responsibility requirement to have health coverage is not subject to criminal or civil penalties under the Code and interest does not accrue for failure to pay such assessments in a timely manner.
|
So in other words, if I understand this wording correctly, there is a 'penalty' for not having insurance, but it is not subject to certain 'enforcement provisions.' Like the quote says, what the IRS usually does when you don't pay your taxes(show up at your door, take you to jail if you don't)....that isn't authorized to be done in order to collect this 'penalty.'
NOT having health insurance, or not complying with the mandate that everyone should have health insurance is not subject to criminal or civil penalties. In other words, if you don't have health insurance, you won't be fined or taken to jail because of it. And there is no interest charged on your failure to have health insurance.
Long story short, the IRS is not allowed to actually enforce the mandate by any means. No past due accrual, interest, no penalties, no liens or garnishments for failure to pay, and no civil or criminal liability. Without enforcement, and no exclusion of preexisting conditions allowed, what will happen?
Well, unless I'm completely stupid, given that there is absolutely nothing in place to keep people from not having health insurance till they actually get sick, along with the fact that insurance companies aren't allowed to turn away someone based on pre-existing conditions the system surely has to go bankrupt.
The health care bill explicitly states that insurance companies are NOT allowed to turn anyone away with pre-existing conditions, what is going to stop people from waiting till they're sick to get health insurance?
Assuming I'm not completely misreading ALL of this, who is the moron who came up with this bright idea? I might not like the health care bill, especially the individual mandate, but I also realize that if you're going to force insurance companies to take patients with pre-existing conditions, you have to force EVERYONE to have health insurance.
Now apparently ALL that is being thrown out.
WTF.