Easy to stay out of ObamaCare

Posted by jyokela 11 years, 1 month ago to Government
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At first I wanted to be thrown in prison in protest for not abiding by the law, but I found out that they won't do anything if you don't follow the law. Just pay less then you would owe in taxes and don't pay the fine. Done.
SOURCE URL: http://www.forbes.com/sites/merrillmatthews/2013/08/19/gaming-obamacares-health-insurance-mandate-for-fun-and-profit/


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  • Posted by Rocky_Road 11 years, 1 month ago
    This could be the one article that the WH hoped would never be published!

    "Once people realize they can game the ObamaCare penalty by (1) remaining uninsured, (2) withholding only what they need to pay their taxes, and (3) signing up for ObamaCare (during “open season”) if they need coverage, it’s possible millions will consider being uninsured or buying a limited, non-qualified health policy a good bet."

    The last line suggests that there could very well be a black market for health insurance, no different than the underground market during Prohibition, and the War on Drugs.

    What a mess!
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    • Posted by CircuitGuy 11 years, 1 month ago
      Here's a practical plan that a small group of wingnuts can implement to destroy PPACA:

      Some churches and large employers already do their own insurance pool, basically running their own little insurance company for the group. What if conservative churches and other conservative organizations did this with the intent of destroying PPACA? Everyone would pay into the group risk pool. They would pay their $58/mo ($695/yr) penalty to the gov't. If they have an urgent need, they use the non-qualified risk pool at church unless/until they can sign up for a qualified plan during open enrollment. At that point they use the qualified plan benefits for their treatment and only supplement with the non-qualified plan if the qualified plan isn't doing the job. If/when their health improves, they go back to paying the $58 fee. The $58 fee is a pain but small compared to premiums even for a pre-PPACA plan for a healthy young person.

      If even half of the rightwingers who think "ObamaCare will destroy American!!!" implemented this, it would seriously cripple PPACA. Gov't would be forced to raise the penalty, resort to stronger measures to force people to buy insurance, or abandon the plan. Either way anti-PPACA nuts win.
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  • Posted by 11 years, 1 month ago
    But if some folks want to remain uninsured, it could be tough for the Internal Revenue Service to get the penalty. That's because Congress did not give the agency the authority to prosecute those who don't pay, a power it does wield over those who don't pay their income taxes, said Jay Angoff, a partner at Mehri & Skalet law firm who worked on health reform in the Obama administration.
    Those who are owed money could see their refunds docked by the penalty amount. Others, however, will likely just get nasty letters.
    "The penalties have little teeth," Angoff said. "Congress didn't give the IRS too much power."
    From: http://money.cnn.com/2013/08/13/news/eco...

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    • Posted by $ Mimi 11 years, 1 month ago
      The penalty is going to come out of any tax refund check the person may have due them. I think certain states will also penalize you, suspending your driver’s license and such.

      Aetna and Coventry have already pulled out of the Maryland exchange. They reason they can’t provide coverage at as low of as a rate as the state wanted.
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      • Posted by 11 years, 1 month ago
        I assume additional penalties would be coming from the states that are running their own exchange since that is not in ObamaCare. I have been waiting to see what states embrace Obamacare, so I can move to one that is doing the bare minimum.
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        • Posted by Rocky_Road 11 years, 1 month ago
          If someone had said to me 10 years ago, "you will be deciding what state to move to, based on health insurance", I would have told them that they were 'nuts'!

          The inmates are running the asylum....
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  • Posted by CircuitGuy 11 years, 1 month ago
    I agree with the part about gaming the system by just paying the penalty, which is small compared to the cost of coverage, and then buying insurance during the open season if you need coverage. The only risk is you'll have an urgent need that can't wait. If everyone does this the system will fall apart b/c there won't be healthy people paying premiums w/o making claims.

    I didn't understand the part about withholding. Sure it will be harder for them to collect the penalty fee, but I'm guessing they have their ways of collecting it. My wife and I are self-employed and send in our own withholding the form of 1040-ES quarterlies. That doesn't mean we don't have to pay taxes/fees we don't like.

    Another question I had was about non-qualified coverage. Is anyone selling it? My provider is phasing out non-qualified plans or modifying them so they are qualified.

    I agree that prices for healthy people not on a group plan are going up. It's happening to my family right now.

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    • Posted by 11 years, 1 month ago
      Just don't over estimate. Just pay the normal taxes. I believe there will be a separate form for the "fee," but as long as you don't pay that "fee" there is nothing that the Feds will do. As Mimi pointed out, there may be ramifications if your state has added them. Yes, there does seem to be non-compliant plans still around. I am not really suggesting that anyone ever buy an ObamaCare plan, even if they need insurance. I think of it as going to Canada for healthcare, when Canadians come here to avoid the long waits and sub-par care. Personally, I don't get that sick and I am willing to take the risk and pay out of pocket if I need. I could never afford a heart transplant, and wouldn't want to live 20 more years to try to pay it off, so if I need one then I am okay with dying in that case. Not everyone is willing to take that risk (as they might have kids) so this is not for everyone. Those who do not think it is in there interest to buy the plans offered by Obamacare or don't need health care insurance, this is for them.
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      • Posted by CircuitGuy 11 years, 1 month ago
        We keep all our insurances (liability, property, health, disability) to protect our wealth. If something should happen, we don't want to choose between spending a big chunk of our net worth or facing death/disability/pain. If our networth ever gets to tens of millions, maybe it never will, we will consider dropping health insurance.
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      • Posted by CircuitGuy 11 years, 1 month ago
        Won't they sue you, put you in jail, or something if you don't pay the fee? They will put you in jail if you don't pay taxes? Why will they just let you get away with not paying this?
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        • Posted by Rocky_Road 11 years, 1 month ago
          The greatest plans of mice and men, often go astray. (Steinbeck)

          Obamacare somehow managed to give the IRS the task of collecting the fines, but not the means to do this, when the taxpayer simply goes 'shrug'. Everything is dependent on the taxpayer being forthwith on their annual tax forms.

          What I submit will happen, and with no real legal opposition, is that the SCOTUS ruling that Obamacare is really only a new tax, will allow the IRS to fall upon their normal delinquent tax collection methods. Everything that you own will be subject to lien, or worse.
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          • Posted by 11 years, 1 month ago
            And to that, I quote from Atlas Shrugged: “That is the flaw in your theory, gentlemen,” said Rearden gravely, “and I will not help you out of it. If you choose to deal with men by means of compulsion, do so. But you will discover that you need the voluntary co-operation of your victims, in many more ways than you can see at present. And your victims should discover that it is their own volition – which you cannot force – that makes you possible. I choose to be consistent and I will obey you in the manner you demand. Whatever you wish me to do, I will do it at the point of a gun. If you sentence me to jail, you will have to send armed men to carry me there – I will not volunteer to move. If you fine me, you will have to seize my property to collect the fine – I will not volunteer to pay it. If you believe that you have the right to force me – use your guns openly. I will not help you to disguise the nature of your action.”
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        • Posted by 11 years, 1 month ago
          No, they won't do anything, that is the point of the article. The bill gave the IRS no enforcement power to attach your wages or assets for not paying the fine. I posted a quote from CNN (above) that addresses this.

          When I first heard about this law years ago, my plan was to quit my job not by insurance and make them come arrest me. I have since found out that it is very hard to be in noncompliance without being a business owner/self employed. See this article for exemptions to mandate: http://blogs.findlaw.com/law_and_life/20...
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