8.1mm tax filers, those who elected to forgo health insurance, were hit with $1.7BN in Obamacare penalties…call it the “young and healthy tax”. Ironically, 40% of the penalties fell upon people making less than $35,000 per year…the very same people that Obama apparently intended to “help”.
Of course, the real tragedy of Obamacare is that even if those 8.1mm young and healthy people wanted to buy health insurance, many of them have now likely been priced out of the market as premiums have soared and coverage “options” have vanished as insurers have pulled out of exchanges all over the country (something we discussed at length in a post entitled “Obamacare On “Verge Of Collapse” As Premiums Set To Soar Again In 2017“). In essence, while the bill has seemingly “helped” the 3.1mm people receiving subsidies in the chart above it has trapped the 8.1mm young and health people with a permanent tax increase as they are now even less likely to buy health insurance after Obamacare has driven up the rates astronomically.
But, of course, the Obamacare penalties will only get even worse from here. According to The Washington Free Beacon, in 2014, uninsured individuals were required to pay the greater of either a flat penalty of $95 for each uninsured adult or 1% of their household’s adjusted gross income. That said, the penalties are set to increase in 2016 to the greater of a flat fee of $695 or 2.5% of AGI. According to the Congressional Budget Office, taxpayers are expected to pay penalties of $4BN in 2016 and $5BN annually from 2017 through 2024.
All this means Obamacare is working as intended. When Obamcare is replaced by government run single payer the young and healthy won’t have to pay these stiff penalties. If the need a doctor they’ll just have to wait 6-12 months to see one.
“What all the wise men promised has not happened, and what all the damned fools said would happen has come to pass.” — Lord Melbourne (1779-1848)