Claim: Item describes penalties for non-compliance with the PPACA individual health insurance mandate.
Example: [Collected via e-mail, October 2013]
----Immediate Attention Required PLEASE -----
If you do not have to sign up with Obamacare on their website PLEASE DON'T! Once you see the cost of premiums and yearly deductible and choose to opt out from that point they will within a few hours email you stating your actual fees in which now they will by any means collect.
REAL EXAMPLE ---- Please Read & Please Forward ASAP!!!
A comment posted on the Affordable Care Act/Obamacare FB page:
I actually made it through this morning at 8:00 A.M. I have a preexisting condition
First, your drivers license will be suspended until paid, and if you go
Origins: One of the key (and most controversial) provisions of the Patient Protection and Affordable Care Act (PPACA), commonly known as "Obamacare," is its establishment of an individual mandate to buy health insurance. Beginning in 2014, U.S. citizens and legal residents are required to either have PPACA-qualifying health insurance coverage (public or private) or pay a penalty for not carrying insurance.
Shortly after the opening of PPACA-created state- and federal-run insurance exchange marketplaces on
Without knowing more details about the person referenced in this item, it's difficult to accurately assess whether the figures quoted for insurance coverage ($597.00 per month with a $13,988 yearly deductible) are completely accurate. However, the PPACA sets annual limits on out-of-pocket expenses at $6,350 for individuals and $12,700 for families on plans offered through the state-based exchanges, so a yearly deductible of nearly $14,000 for someone shopping for coverage through an insurance exchange isn't a plausible offering.
The penalty for failing to carry qualifying health insurance coverage varies with household size, income, and year. In general, the penalties for non-compliance will be assessed as follows:
2014 $95 or 1% of income above tax filing threshold
2015 $325 or 2% of income above tax filing threshold
2016 $695 or 2.5% of income above tax filing threshold
For families (whichever is greater):
2014 $285 or 1% of income above tax filing threshold
2015 $975 or 2% of income above tax filing threshold
2016 $2085 or 2.5% of income above tax filing threshold
According to a Congressional Research Service (CRS) report on the PPACA Penalty Provision and the Internal Revenue Service, collection of the penalty for failure to maintain qualifying health insurance coverage may include the IRS' withholding money from federal income tax refunds and obtaining liens against the taxpayer's property, but the PPACA does not allow for criminal prosecution or the seizure of bank accounts or other property:
Those who are required to pay the penalty for failure to maintain minimum coverage but choose not to do so will be subject to increases in the amount owed due to interest and late payment penalties imposed on the penalty after it has been assessed by the IRS.
A taxpayer who chooses not to pay the required penalty may ultimately forfeit more than the amount of the penalty if that taxpayer is ever in the position of having an overpayment to the IRS for any reason, since the refund offset applies not only to overpayments shown on original tax returns, but also to any subsequent adjustments, for example an audit by the IRS that results in an overpayment. Further, as explained above, it is possible that the IRS could present its claim when property is being sold and collect both the original penalty amount along with accrued interest and applicable penalties.
In short, failure to pay the PPACA non-compliance penalty might result in the IRS' sending you warning letters and deducting the penalty amount from your future tax refunds (if you have any), but not throwing you in jail, forcibly taking money from your bank account, or seizing your house or other property. We have also found no provision of the PPACA or IRS code that would allow the federal government to suspend an individual's driver's license as a penalty for non-compliance with the individual mandate provision of the PPACA.
Last updated: 4 October 2013