From the I told you so section of the news comes a report that the Obama administration is having trouble convincing people to buy insurance, or pay a fine – despite the fact that they’ve extended the window to buy coverage. Why? Well…
This is the first year fines are being collected from uninsured people the government deems able to afford coverage. Tax preparation company H&R Block says the penalty averages about $170 among its affected customers. It usually is deducted from a person’s tax refund.
Those penalized are mainly the kind of people the law was intended to help: low- and middle-income workers who do not have coverage on the job or are self-employed. Roughly 4 million people are expected to pay fines, according to congressional estimates.
Basically, in June of 2014 CNN reported that the average monthly Bronze Obamacare payment after subsidies was $82, or $984/year. That is significantly more than the 2014 penalty. That’s also significantly more than the $325/year minimum penalty for this year. Turns out that the administration miscalculated just how much of a deterrent the fine fine was; which is pretty much par for the course for this administration, huh? (more…)