Health Insurance Tax Will Impact More People Than Originally Estimated
The health insurance tax law will charge implement a fine of $700 or two and a half percent of total household income for households without insurance. It is estimated that the total number of health insurance tax penalties will be 50% over what was originally expected.
Are you looking for free insurance quotes?
Secured with SHA-256 Encryption
UPDATED: Jul 21, 2020
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
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.