Bob Wenzel observes in his blog:
Under the new bill, most Americans without insurance would face an annual penalty, starting in 2014 at $95 – the same as in the Senate bill. But in following years, the penalties in the reconciliation bill are slightly different. Those without insurance in 2016, for example, would pay the greater of two alternatives: a flat fee of $695, down from the Senate’s $750, or 2.5 percent of their income, up from 2 percent in the Senate bill, reports Kaiser Health News.
In reality, the penalties for freedom will climb and climb.
to which few readers added:
Nicholas J. Kaster said…
Therefore, a healthy 25 year old will have the “choice” of paying $695 or, say $500 a month for an insurance policy (the bill also mandates the kind of policy he would be forced to buy). I rather suspect a lot of people in that position will opt to pay the cheaper penalty and keep going without insurance. Since insurance companies will now be forbidden to deny coverage to those with pre-existing conditions, such an individual could wait until being diagnosed with an illness, and then apply for coverage. Of course, this completely destroys the concept of insurance, but such are the unintended consequences of this legislation.
Brian Shelley said…
As an Actuary, this is the fatal flaw of the Obama bill. Why will anyone sign up for a $6,000 personal insurance product when not signing up costs them $95, and they are guaranteed issue whenever they get sick. Beyond vehicle accidents, which are usually covered by car insurance, few illnesses strike someone so fast that they can’t wait to sign up for insurance. Oh, I have cancer, let me sign up for insurance now. Oh, I have MS, I have HIV, I’m pregnant, let me sign up now that I know. Premiums will soar, and only the sick, the very risk averse or high income people will sign up for insurance. It’s awful.
And to all of this we add:
Why look to governments to solve your problems? Why continue to support this foolishness? Consider voting with your dollars and keep them at home instead of sending them to Washington.