Health Care Reform
Penalty 101: Arguably, the most critical component of the Affordable Care Act, the individual mandate requires every American to either carry health insurance or face a fine. Last month, a Congressional Budget Office analysis estimated that 11-12 million uninsured Americans would be subject to the individual mandate, with more than half expected to pay the fine rather than obtain coverage. What that means is that, beginning in 2014, many consumers who can afford health insurance but elect to go without, must pay penalties to the IRS when they file their taxes the following year. And, while these penalties start off small, they ramp up to their full levels by 2016. But, due to the inherent confusion accompanying full implementation, it is believed that more people than previously estimated may face the penalty.