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Health Insurance Tax Will Impact More People Than Originally Estimated

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UPDATED: Aug 23, 2013

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The Congressional Budget Office released a new report stating that the original number of people required to pay the health care tax associated with not having health insurance is likely higher than originally anticipated. According to an article in the Washington Times, the CBO estimates the increase to be 50% over what they had originally reported back in 2010.

Overall there will be an estimated 30 million people that will not have insurance when the new law goes into place; all but six million of them will be exempt from having to pay any penalty.

The Congressional Budget Office estimates that it will pull in close to $7 billion in penalties in 2016, when the law comes to full maturity, with that figure rising to $8 billion in the years following.

Once the law is fully implemented in 2016, the penalty for an individual not having health insurance will be almost $700 or two and a half percent of their total household income, whichever is higher.

A big reason for the increased projection is the slow growth of the economy. When the numbers were originally put together, the estimate for growth was higher and so was the expectation that people would be able to afford health insurance. With much of the job growth coming in low-paying industries, the estimated number of people which can afford health insurance had to be revised.


About Eric Stauffer

Author: Eric StaufferI am a former insurance agent and banker turned consumer advocate. My priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

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