Every day we all hear about Obamacare. Today, they are debating which day is actually the day that you must enroll in an insurance program to avoid a penalty. Everyone thought it was this day, now it’s this day. People are really sweating that, the penalty. It’s one of the cornerstones of why the Republicans are so against the program, and in fact, Congress (both sides) is already discussing whether that penalty date should be pushed back some more because of all of the website woes of the official Obamacare engine.
The irony: the penalty is nowhere near as significant as the insurance premium itself.
Let’s take a look at these draconian penalties that everyone is so up in arms about:
Okay, so yes it does get worse as we go along, but still still, this penalty we are talking about delaying in 2014. It’s $95 or 1% of your income, whichever is greater. So, if you make $50,000 a year in your income, your talking about a $500 fine for the year. If you make $100,000 a year, we’re talking about a $1000 fine for the year. If you make $25,000 per year, well, you’d be a fool to pay the fine because your insurance under the program would be so low that you would have to really just have a problem with it to not want to take the insurance.
So, you’re saying, yeah, that’s right… a $500 fine is significant. A thousand bucks to not have health care. Well, it’s actually a bargain when you consider where the penalty ranks against actually getting health care. Because if your income is high enough for the penalty to be significant, you weren’t going to get any help from government subsidization through the program anyway. So, it’s safe to say that if you didn’t have insurance and were just taking your chances with your own health and that of your family’s, having to sign up for insurance is gonna hurt you. Even good employer-subsidized plans could easily set you back $150-$200 a week for family coverage. Do the quick math, and you’ll see that the penalty for not getting insurance is actually less than the cost of getting it (once again, this only applies for families that make enough that they would not be getting help anyway).
Your choices: sign up for insurance and be out possibly $10,000 per year, or pay a $500 fine that will come out of your tax refund and you will probably never notice.
So it’s time to get back to the point here, people. The penalty doesn’t make a hill of beans. It’s what the penalty is punishing you for that is the issue. You are being forced to get health insurance by the government. Yes, we at Common Sense Conspiracy don’t approve of the government forcing anything down our throats, but here’s one thing you should bear in mind here.
If you did not have health insurance already before all of this crap started, you should, at the very least, have been hoping and planning a route to get health insurance.
You understand this should be a goal, somewhere down the line? Everyone should be openly pursuing affordable health care. The fact that we even have to pass a cryptic law that no one understands to supposedly force people to get health care insurance that didn’t already is insane.
The penalties are actually so low that they are prohibitive. That’s right. The penalties are ridiculous because they aren’t bad enough to accomplish the goal. If that little fine was supposed to make someone that wasn’t getting health care get it, it was a complete failure. If you are steadfast that you like to roll the dice, you will pay the $100 bucks and move on.
Meanwhile, millions of Americans who couldn’t afford health care insurance will get to use other American’s money to get it…
Meanwhile, because no more money is coming in than ever, this will be subsidized not by the government but by the American people…or by borrowing more money against everyone’s favorite debt ceiling.
You want to be mad about Obamacare penalties? Get mad because the whole thing doesn’t make financial sense in the first place. Get mad because your government is adding new programs when they can’t afford to keep the lights on in the White House.
But don’t be mad about the silly little Obamacare penalties. They really aren’t that big of a deal in the grand scheme of things.