Individual Mandate
Individuals must have health coverage effective January 1, 2014 either through employer coverage, government, private or the exchange. If individuals elect to purchase coverage through their State run Exchanges (place where we will purchase coverage) they will be able to choose from several options: The plans will range from minimum plan or Bronze Plan to the Silver plan, Gold and Platinum Plans. In addition for those under 30 years old, you will be able to purchase a catastrophic plan which is kindly named the "young and invincible" plan. This plan makes absolutely no sense. Since all health coverage offered through the exchange will be community rated, you want the younger and healthiers on plan and paying into the system to help off-set the older and/or unhealthiers.
Many States are arguing the constitutionality of the Individual Mandate
This is how the cost of the plans will break-down for people earning at or below 400% of the Federal Poverty Level (FPL)
Individuals earning up to 133% of Federal Poverty Level (around $14,000/Year) will be eligible for free coverage under expanded version of Medicaid. Individuals earning 133%-400% of Federal Poverty Level will receive a subsidy based on a sliding scale up to 400%. 400% of FPL for an individual is $44,000 per year and a family of four is $88,000 per year. Nobody will pay more than 9.5% of their annual household income on health coverage if they fall at or below 400% of the FPL.
So What if You Say Forget It, No Coverage for Me........?
Fines for not having coverage
In 2014 you will pay a fine of $95 per year or 1% of income whichever is greater and by 2017 amount goes to $695 or 2.5% of income to a maximum of 3X the individual penalty.
Non-payers will receive a notice from the IRS . If they don’t pay, the IRS will take it from their tax refund in the future. If they continue to not pay the fine, they will not be subject to any criminal prosecution or penalties. The secretary cannot file a notice of lien or file a levy on any property……..In other words, no teeth to this penalty.
