IRS finalizes penalties for Obamacare "individual mandate"
August 28th, 2013
02:38 AM ET
11 months ago

IRS finalizes penalties for Obamacare "individual mandate"

(CNN) - The Internal Revenue Service has issued finalized rules for the individual mandate portion of the Affordable Care Act, President Obama’s healthcare plan.

The individual mandate penalty has long been one of the contentious components of health care reform, with lawsuits questioning the constitutionality of the law reaching the Supreme Court.

Under the new rules, individuals choosing not to carry insurance are subject to a penalty of $95 per person each year, or 1% of household income, whichever is greater, beginning in 2014. Over time, the penalty increases, so that by 2016 the penalty is $695 per person, or 2.5% of household income. Subsequent years will be calculated based on a cost-of-living formula.

The IRS also specified what constitutes the minimum level of coverage under the new law.

Several exceptions exist to the individual mandate, including those people who lack insurance while temporarily unemployed, or those individuals whose health care is supplied by a temporary staffing agency.

Those who qualify for Medicaid, but live in a state that has opted out of the new expanded program, such as Texas, Pennsylvania, or Wisconsin, will also be exempt from the penalty.

The individual mandate penalty goes into effect on January 1, 2014.


Filed under: Health care • IRS
soundoff (32 Responses)
  1. Anonymous

    Having food for yourself and children is one thing. Having a place to live is one thing. Those are called needs. Health Insurance, cars, electricity, television, air conditioning, those are all wants. I understand times have changed from the 1600's, but you can still live without them. Ask the Amish, and they will tell you (just dont take pictures of them, they get upset). Or ask someone in a poorer area of the world, or even in your own state. They are more... comfort items, and make life easier (I confess, i lived without electricity and A/C next to a river for nearly 8 months, in northern MN. It was not exceptionally pleasant, but I am still here). Not saying we should become nudists, or join a cult, or get rid of those things. Just saying there is a difference between need and want.

    August 28, 2013 10:17 am at 10:17 am |
  2. Bessy

    ghost

    There should be a penalty for those companies that cut workers hours to avoid providing health insurance. And it should be very severe. It is time for the greed to stop. CLINTON 2016
    _______________________________________________________________________________________________

    I agree with you 100%.

    August 28, 2013 10:18 am at 10:18 am |
  3. Fair is Fair

    It should be interesting when these numbers come out:

    Number of enrollees
    Percentage of enrollees receiving subsidies
    Percentage of enrollees whose employer dropped their coverage
    Percentage of enrolees whose employer cut back their hours
    Average age of enrollee
    Percentage of eligible lives opting for the penalty
    Average of eligible lives opting for the penalty

    ONLY THEN can anyone with any degree of accuracy determine whether this boondoggle accomplished it's stated goal of universal coverage.

    But that's not the REAL goal of the ACA, now is it?

    August 28, 2013 10:22 am at 10:22 am |
  4. Rudy NYC

    Anonymous wrote:

    Having food for yourself and children is one thing. Having a place to live is one thing. Those are called needs. Health Insurance, cars, electricity, television, air conditioning, those are all wants.
    --------------–
    Stop right there. Health care is a need. You needed health care the moment you were born. I am surprised to hear conservatives take the position that people don't need health care because it so blatantly contradicts their entire personal responsibility values system. Apparently it's okay to be mooch off of society when it comes to health care among conservatives.

    August 28, 2013 10:23 am at 10:23 am |
  5. sonny chapman

    Govt. & Laws cannot FORCE people to do what is in the Collective Best Interest of Society. They can not overcome human foibles like fear & hate. Govt. & Laws can firmly guide members of Society in the direction that hopefully provides some harmony among a Nation of over 300 Million folks.

    August 28, 2013 10:23 am at 10:23 am |
  6. The Real Tom Paine

    -Fair is Fair

    It should be interesting when these numbers come out:

    Number of enrollees
    Percentage of enrollees receiving subsidies
    Percentage of enrollees whose employer dropped their coverage
    Percentage of enrolees whose employer cut back their hours
    Average age of enrollee
    Percentage of eligible lives opting for the penalty
    Average of eligible lives opting for the penalty

    ONLY THEN can anyone with any degree of accuracy determine whether this boondoggle accomplished it's stated goal of universal coverage.

    But that's not the REAL goal of the ACA, now is it?
    **************************
    Ok, I'll bite: what is the real goal of the ACA? Please, don't bother with an answer that talks about Obama taking us down the road to socialism, or some other nonsense: I would like to think you're better than that.

    August 28, 2013 10:52 am at 10:52 am |
  7. Fair is Fair

    @ Tom Paine –

    "Ok, I'll bite: what is the real goal of the ACA? Please, don't bother with an answer that talks about Obama taking us down the road to socialism, or some other nonsense: I would like to think you're better than that."
    --------
    Tom, seriously? The ACA is just an incremental step towards single-payer. Nothing more, nothing less. That's not "nonsense"... it's an objective opinion shared by many, both on the left and on the right.

    August 28, 2013 11:01 am at 11:01 am |
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