Reply To: Why is Health Insurance becoming Mandatory? What's the point?

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MonkeyZazu # Posted on October 29, 2013 at 8:43 pm

@tangledupinplaid21,

This post is for you and anyone else who just wants straight up information on the mandatory health insurance. At the bottom of this post will be links to where I’m getting all of this information from, which is http://healthcare.gov for the most part. Even though I’m providing this info, please still do your own research into this topic. Just getting all of your information from one source isn’t very wise.

First to answer your questions:

Will it be taken directly out of my pay check? – No

Is it true that people who make 20,000 or less a year are exempt from this?
From what I’m understanding, if your income for the year meets the minimum amount needed to file taxes, then you have to get health insurance. If your yearly income does not meet the minimum needed to file, then you are exempted from the fee. On pg. 2 of this document(http://www.irs.gov/pub/irs-pdf/p501.pdf), see Table 1 for more details. I’m a little sketchy on this myself because I haven’t seen anywhere that your exempted if your income is below a certain income. This page(https://www.healthcare.gov/exemptions/) shows qualification for exemptions from the “penalty fee” and qualifications for exemptions from actually having to get health insurance, known as “hardship exemptions”.

What is the penalty for not having insurance?
If someone does not get health insurance by March 31st of 2014, they will have to pay a penalization fee known as the “Individual Shared Responsibility Payment” from now on when they file their taxes. When you file your 2014 taxes at the beginning of 2015 and don’t have health insurance, you will have to pay $95 or 1% of your annual income(which ever is higher).

If my employer does not offer health insurance, what does that mean in regards to this?
That you will have to get your own individual health insurance.

One thing that I would like to make clear about this Affordable Health Care Act, which is the act that is pretty much making health insurance mandatory, THIS IS NOT A TAX. I repeat, this is not a tax. Calling this a tax would be the same thing as calling your monthly “rent” a tax. It’s not a tax. It’s a law requiring you to get health insurance, which is a bill. Taxes are what governments use in order to provide services to a country. Social Security and Medicare are taxes that are taken out of your paycheck. This Affordable Health Care Act “requires all people who can afford it to take responsibility for their own health insurance by getting coverage or paying a fee.” The government is not providing you with health insurance, the health insurance company of your choice. Once again, not a tax.

If you don’t have health insurance, Obama created the Health Insurance Marketplace in order to help people find affordable health insurance. If you go to this link(https://www.healthcare.gov/find-premium-estimates/) it will give you an estimate of what your expected monthly premium will be, which depends on what plan you choose.

Once again, this is my understanding of this information that I have found. Please research this own your own to come to your own understanding.

What if someone doesn’t have health coverage in 2014?
https://www.healthcare.gov/what-if-someone-doesnt-have-health-coverage-in-2014/

How do I get an exemption from the fee for not having health coverage?
https://www.healthcare.gov/exemptions/

Exemptions, Standard Deduction,and Filing Information
http://www.irs.gov/pub/irs-pdf/p501.pdf

What is the Health Insurance Marketplace?
https://www.healthcare.gov/what-is-the-health-insurance-marketplace/

How Federal Taxes Work
http://money.howstuffworks.com/personal-finance/personal-income-taxes/federal-taxes.htm