Reach 7 million?

[JJB3333]

Do you think that Obamacare can get its 7 million people when it only has 100000 people signed up already and being off to such a rocky start?

 

[AliHajiSheik]

Do you think that Obamacare can get its 7 million people when it only has 100000 people signed up already and being off to such a rocky start?

I don't know. Why do you think that they want that many? Seems like they would be more financially successful (from their point of view) if they could just levy the fines.

 

[ttwtt78640]

I don't know. Why do you think that they want that many? Seems like they would be more financially successful (from their point of view) if they could just levy the fines.

The annual fines are only $95 per taxpayer but the annual subsidies can be $4,000 to $16,000 per exchange policy.

 

[Dickieboy]

The annual fines are only $95 per taxpayer but the annual subsidies can be $4,000 to $16,000 per exchange policy.

The bolded above is an often quoted error. The fine is the greater of $95 OR 1% of income. Considering that $95 is 1% of $9500 AND $9500 qualifies one for Medicaid the vast majority will be 'fined' more than $95....

 

[ttwtt78640]

The bolded above is an often quoted error. The fine is the greater of $95 OR 1% of income. Considering that $95 is 1% of $9500 AND $9500 qualifies one for Medicaid the vast majority will be 'fined' more than $95....

You are correct that some taxpayers would have 1% (2.5% by 2016) of their income exceed the amount required to pay their annual insurance premiums (plus the deductable), but the vast majority of those follks already have medical care insurance.

 

[CanadaJohn]

Do you think that Obamacare can get its 7 million people when it only has 100000 people signed up already and being off to such a rocky start?

If you mean reaching a goal of 7 million new enrollees to Medicaid, costing the federal government and state's governments untold billions/trillions, the answer would be yes. If you're trying to find out if there will be millions of people who have no insurance now and don't want it, the so called "healthy, invincible youth", not a chance. They will hold out, hoping the penalty will be deferred, and even if it's not, the first year penalty is $95 I think so who's going to pay hundreds of dollars a month for something they don't want and likely won't need as opposed to paying $95 and then, if a serious illness or health problem arises, rush out and sign up under the exchanges for your Obamacare plan, no pre-existing conditions disqualifiers allowed.

And this is not even mentioning the tens of millions of people who will lose their current insurance, either because their employer cancels it or because their insurance company had to discontinue their plan because it didn't meet ACA minimum standards. Will all these people go out and buy a new plan? I'm betting many, those who are single and young or married with no children, will take the gamble and not have insurance, increasing the number of people in America not covered by health insurance of some sort.

How long before the system implodes when all you have are the most costly of "patients" getting to buy insurance, a burgeoning of Medicaid enrolments, and the least costly of "patients" either not signing up or dropping out?

 

[Lutherf]

You are correct that some taxpayers would have 1% (2.5% by 2016) of their income exceed the amount required to pay their annual insurance premiums (plus the deductable), but the vast majority of those follks already have medical care insurance.

Right. Furthermore, having the fine assessed is one thing while having it collected is quite another. As of now there is no statutory authority to collect the fine from anything other than a tax refund so if you owe the fine and also owe taxes the fine will never be collected. One thing we haven't figured out yet is how tax payments will be allocated. If, for example, you owe $500 in income tax and $250 in ACA penalty and send in a check for $500 we don't know if that $500 will go to the tax first and the penalty second or vice versa.

 

[AliHajiSheik]

The annual fines are only $95 per taxpayer but the annual subsidies can be $4,000 to $16,000 per exchange policy.

I think we are saying something similar. My understanding is that the first year fine is $95 per person, but that it increases in successive years. If people don't sign up, then there is no subsidy that needs to be paid.