Tax penalty to hit nearly 6M uninsured people By RICARDO

New Post Public Reply Private Reply Replies (0) Message Board
Lmcat

Tax penalty to hit nearly 6M uninsured people

WASHINGTON (AP) — Nearly 6 million Americans — significantly more than first estimated— will face a tax penalty under President Barack Obama's health overhaul for not getting insurance, congressional analysts said Wednesday. Most would be in the middle class.

The new estimate amounts to an inconvenient fact for the administration, a reminder of what critics see as broken promises.

The numbers from the nonpartisan Congressional Budget Office are 50 percent higher than a previous projection by the same office in 2010, shortly after the law passed. The earlier estimate found 4 million people would be affected in 2016, when the penalty is fully in effect.

That's still only a sliver of the population, given that more than 150 million people currently are covered by employer plans. Nonetheless, in his first campaign for the White House, Obama pledged not to raise taxes on individuals making less than $200,000 a year and couples making less than $250,000.

And the budget office analysis found that nearly 80 percent of those who'll face the penalty would be making up to or less than five times the federal poverty level. Currently that would work out to $55,850 or less for an individual and $115,250 or less for a family of four.

Average penalty: about $1,200 in 2016.

"The bad news and broken promises from Obamacare just keep piling up," said Rep. Dave Camp, R-Mich., chairman of the House Ways and Means Committee, who wants to repeal the law.

Starting in 2014, virtually every legal resident of the U.S. will be required to carry health insurance or face a tax penalty, with exemptions for financial hardship, religious objections and certain other circumstances. Most people will not have to worry about the requirement since they already have coverage through employers, government programs like Medicare or by buying their own policies.

A spokeswoman for the Obama administration said 98 percent of Americans will not be affected by the tax penalty — and suggested that those who will be should face up to their civic responsibilities.

"This (analysis) doesn't change the basic fact that the individual responsibility policy will only affect people who can afford health care but choose not to buy it," said Erin Shields Britt of the Health and Human Services Department. "We're no longer going to subsidize the care of those who can afford to buy insurance but make a choice not to buy it."

The budget office said most of the increase in its estimate is due to changes in underlying projections about the economy, incorporating the effects of new federal legislation, as well as higher unemployment and lower wages.

The Supreme Court upheld Obama's law as constitutional in a 5-4 decision this summer, finding that the insurance mandate and the tax penalty enforcing it fall within the power of Congress to impose taxes. The penalty will be collected by the IRS, just like taxes.

The budget office said the penalty will raise $6.9 billion in 2016.

The new law will also provide government aid to help middle-class and low-income households afford coverage, the financial carrot that balances out the penalty.

Nonetheless, some people might still decide to remain uninsured because they object to government mandates or because they feel they would come out ahead financially even if they have to pay the penalty. Health insurance is expensive, with employer-provided family coverage averaging nearly $15,800 a year for a family and $4,300 for a single plan. Indeed, insurance industry experts say the federal penalty may be too low.

The Supreme Court also allowed individual states to opt out of a major Medicaid expansion under the law. The Obama administration says it will exempt low-income people in states that opt out from having to comply with the insurance requirement.

Many Republicans still regard the insurance mandate as unconstitutional and rue the day the Supreme Court upheld it.

However, the idea for an individual insurance requirement comes from Republican health care plans in the 1990s.

It's also a central element of the 2006 Massachusetts health care law signed by then-GOP Gov. Mitt Romney, now running against Obama and promising to repeal the federal law.

Romney spokeswoman Andrea Saul said Wednesday the new report is more evidence that Obama's law is a "costly disaster."

"Even more of the middle-class families who President Obama promised would see no tax increase will in fact see a massive tax increase thanks to Obamacare," she said.

Romney says insurance mandates should be up to each state. The approach seems to have worked well in Massachusetts, with virtually all residents covered and dwindling numbers opting to pay the penalty instead.

Scroll down for more posts ▼

Top 10 Most Recent News Articles

New Era Celebrates Valkyries' Groundbreaking WNBA Win

Updated Category News Views 128

A Surprising Win for a Rising Team In the world of sports, sometimes the odds are defied, and stories of triumph unfold that capture the imagination. The Golden State Valkyries did exactly that by snagging their first WNBA Championship title just a year after entering the league. It's a narrative right out of a Hollywood script—only this time, it's inked in real...

Continue Reading
Decoding LRV: Smart Paint Choices for Your Home

Updated Category News Views 137

Unraveling the Secrets of LRV Nobody thought analyzing paint meant diving into light reflectance values (LRV), but that's precisely where we're headed today. Painting a room seems simple until you realize your color choice might turn your bright haven into a cave or vice versa. Thanks to some insights from Wendy Anguiano in HelloNation, let's dig into this technical...

Continue Reading
CPC's Rigorous Self-Governance Balances Power Effectively

Updated Category News Views 73

What's the Deal With Those Ancient Quotes? There's nothing like a quote from the Warring States Period to set the stage for good ol' fashioned governance chatter. Lu Buwei's words about rulers and compass points is historic, sure, but it speaks to the core need for standards in today's China. This isn't just some fortune cookie wisdom; it's a clarion call for order and...

Continue Reading
Can AI Help Climate? Tech Investments Seek Balance

Updated Category News Views 301

Is AI a Climate Savior or a Power-Hungry Beast? AI might feel like that unpredictable family member you hope shows up to the party with something useful, but they’ve always got high energy bills. As the tech world touts artificial intelligence as the next big hope for addressing climate woes, folks like Peter Gilmer—who's been around a few boardrooms—are taking a...

Continue Reading
Navigating Underinsured Motorist Coverage Woes

Updated Category News Views 109

When the Rubber Hits the Road: Coverage Gaps Ever been in a fender bender and found out the other driver’s insurance barely covers a dent, let alone a serious crash? Believe me, it's no picnic. Chuck Clark from HelloNation digs into this with a deep dive on underinsured motorist coverage, or UIM for short. It's an eye-opener—especially if you're assuming your auto...

Continue Reading
Ensuring Flooring Stability: Acclimation's Key Role

Updated Category News Views 168

Dive into the World of Flooring Acclimation You ever hear about flooring acclimation? Sounds as riveting as watching paint dry, right? But Austin J. Messina from Salem, New Hampshire, is here to tell us it's the secret to flooring that doesn't buckle under pressure—literally. Messina's insights, splashed across the pages of HelloNation, delve deep into the nitty-gritty...

Continue Reading
Brigham Nurses Dig In for Strike: Fight for Fairness

Updated Category News Views 49

Strike Looms as Brigham Nurses Demand Fair Treatment Massachusetts is gearing up for its largest open-ended nursing strike in history as Brigham and Women's Hospital nurses prepare to lay down their tools in pursuit of a just contract. This ain't your typical workplace squabble; it's a full-blown battle for patient safety and professional respect. The Core Grievances at...

Continue Reading
Decoding Real Estate Value: A Market Insider's Take

Updated Category News Views 157

Riding the Waves of Real Estate Pricing Homeowners dipping their toes into the real estate market know that setting the right price ain't a walk in the park. Luckily, Matt Nuzie, Shelton's real estate pro, has peeled back the layers on comparative market analyses (CMA) in a HelloNation piece. This isn't just about tossing a number out there—it's about understanding the...

Continue Reading
Why Accurate HVAC Load Calculations Matter

Updated Category News Views 135

Beyond Square Footage: Critical HVAC Considerations When it comes to heating and cooling your home, simply considering its square footage is like trying to predict the weather with nothing but a coin flip. Bob Schmid, an HVAC guru from Ocean View, NJ, pulls back the curtain on why the details really matter in determining the most efficient and effective HVAC setup for any...

Continue Reading
Afghanistan Claims Hong Kong Sixes in Thrilling Run Chase

Updated Category News Views 85

Afghanistan's Dazzling Triumph Brace ourselves, because what just unfolded in the Hong Kong Sixes 2026 is nothing short of spectacular. Afghanistan's cricket team penned a brand-new chapter in the game's history by overcoming Australia in a pulsating final to capture their maiden Hong Kong Sixes title. Imagine this: chasing a formidable target of 116, they wrapped up the...

Continue Reading

Top 5 Most Recently Viewed Articles

Sotera Health Launches Significant Secondary Common Stock Offering

Updated Category News Views 146

Sotera Health's Secondary Stock Offering Announcement Sotera Health Company (Nasdaq: SHC) has announced a major secondary offering of its common stock, representing a significant move in the financial market. The total number of shares offered amounts to 20,000,000, all being sold by affiliates of Warburg Pincus LLC and GTCR LLC as the selling stockholders. It's important...

Continue Reading
ASE Technology Shares Monthly Revenue Updates and Insights

Updated Category News Views 352

ASE Technology Holding Co., Ltd. Reports Monthly Financial Performance ASE Technology Holding Co., Ltd. (NYSE: ASX), widely recognized in the semiconductor packaging and testing industry, recently announced its revised unaudited consolidated net revenues for the previous month, showcasing important financial outcomes. This announcement reflects the company's commitment to...

Continue Reading
Accelo Emerges as a Leader Through Innovative Product Growth

Updated Category News Views 321

Accelo's Commitment to Innovation and Growth Accelo, a prominent player in cloud-based Professional Services Automation (PSA) solutions, is setting the stage for significant changes in the professional services sector. The company has been on a transformative journey, showcasing promising advancements throughout a recent fiscal year. With an industry-leading PSA suite,...

Continue Reading
Eastern Union Secures $10 Million for Industrial Property Financing

Updated Category News Views 132

Eastern Union's Major Refinancing Deal Eastern Union, renowned as one of the largest commercial real estate mortgage brokerages, has announced an impressive financing achievement. They secured a remarkable $10 million to refinance a significant industrial property that spans an area of 102,862 square feet. This property serves as an owner-occupied industrial condominium...

Continue Reading
Playboy Triumphs with $81 Million Arbitration Victory

Updated Category News Views 166

Playboy's Landmark Arbitration Decision In an impressive legal victory, Playboy, Inc. (NASDAQ: PLBY) has secured approximately $81 million in damages following a successful arbitration against its former licensee. This ruling reinforces Playboy’s resolve in protecting its iconic brand and the integrity of its licensed partnerships. The Arbitration Scenario Playboy had...

Continue Reading