President Obama’s Affordable Care Act goes into full effect next year, but for many Americans, there is a trend of defiance and not wanting to take part in the healthcare reform initiative. Be ready to dole out money to the federal government, though.
According to the Congressional Budget Office (CBO), approximately six million people could be forking over more than $7 billion to the feds. Here is how the program would work: adults who are uninsured either have to pay a flat fee for themselves and their children or be forced to pay a percentage of their – whichever one is greater.
The Kaiser Family Foundation laid it out in a graph:
– $95 per adult or one percent of family income in 2014
– $325 per adult or two percent of family income in 2015
– $695 per adult or 2.5 percent of family income in 2016
The penalties will be collected through tax returns. During tax season, if you are owed money then those funds could be subtracted from the Obamacare fines, while other individuals could just receive letters of notification.
Industry experts say that these fines would certainly prompt many of those who oppose Obamacare to sign up for it in order to avoid the hefty chunks of change that would be forced to be given to the government.
The CBO noted, though, that out of the 30-plus million Americans that are lacking coverage, about 80 percent of them will be exempted from the mandate, such as undocumented immigrants, Native Americans and households earning too little to file tax returns. In addition, the impoverished can file for hardship exemptions, while citizens who pay more than eight percent of their income for health insurance and impoverished adults in states not expanding their Medicare programs are subject to exemption.