<p>So, could you buy a plan that is not ACA compliant and pay a $95 fine?</p>
<p>I suspect states would go after insurers selling such policies, if such a practice became popular. And if they didn’t, the feds would. Other insurers, I feel sure, would lean heavily on state governments to go after insurers cherrypicking by selling non-compliant policies.</p>
<p>This is gonna get really complicated!</p>
<p>Complicated things are complicated. There is no way to make health care costs simple.</p>
<p>I guess we’ll have to wait to see in what format you ‘prove’ to the IRS that you have compliant coverage. </p>
<p>Is there going to be another W2-ish thing you staple to the return? And is the IRS then supposed to contact the company to see if you really have a policy? Or will they be getting a copy like a 1099?</p>
<p>The mind boggles!</p>
<p>"So, could you buy a plan that is not ACA compliant and pay a $95 fine? "</p>
<p>Your fine is income based with a minimum of 95 and it will go upwards. I have been hearing about a loophole that says if you are not owed a refund, IRS has no way of collecting it (I think the previous thread discussed it).</p>
<p>If someone actually sells you a non-compliant plan then they are in a lot more trouble than you. So no point in looking for one?</p>
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<p>well, if that was your only health care cost, I’s rather pay the $620 and save thousands of dollars on the premiums…all depends how you look at it.</p>
<p>Maybe, ACME could sell a product called something other than health insurance for people who decide to opt out. But, honestly, I think there are going to be plenty of revisions before this all shakes out. It seems for many, “If you like your insurance you can keep your insurance,” is becoming a glitch.</p>
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<p>In Massachussetts, you get a 1099-like tax form from your insurance company detailing that you had qualifying coverage. You then complete a 4-page (I think) form for health coverage on the state tax return. I expect something similar for ACA-qualifying federal plans.</p>
<p>BTW, I think the federal penalty/tax is a max of $95 for 2014, but really starts to have some teeth in 2015 when the penalty/tax jumps to $695.</p>
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<p>Yes, if you could find someone selling one, but the fine isn’t $95; $95 is the minimum. The fine is the higher of $95 or 1% of the amount of household income above your standard deduction and exemptions. (Roughly $10K for a single filer). So the single filer who has too much income to qualify for a subsidy -let’s say $50,000- and decides to pay the penalty instead will be paying $400 in the first year, not $95.</p>
<p>Wow! That could still make sense for some people if policies like that could be sold. But, I think there’ll be changes ahead.</p>
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Works if you live off the grid and never, ever will have a refund due from IRS. I think the IRS can run up interest on any unpaid amount – so sooner or later the IRS will get its $95 or $400 or whatever.</p>
<p>My guess is that either the exchange or your insurance company will send you a form like a 1098-T (the form that colleges use to report tuition and financial aid). There will be a new line somewhere on the 1040 where insurance info will be reported.</p>
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<p>That’s a minimum, not max. (Big difference). </p>
<p>I’d admit that even the max is far less than what the premiums may be – but anyone who would have to pay more than 8% of their AGI for the lowest priced Bronze plan on their exchange is exempt from the penalty.</p>
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The point of INSURANCE is to protect against risk. Health insurance is unique in that it actually gives you some benefits even when the risk you are insuring against doesn’t happen – I guess it’s as if your car insurance policy also promised free oil changes.</p>
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<p>Yes but since you control your own deductions and with holdings, that is easily arranged. And I think the Mandate ‘tax’ is special because the IRS isnt allowed to subject anyone to enforcement penalties to collect. Not sure if that includes interest. </p>
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<p>What if someone just sells you a photoshopped 1098-INDMAN tax stub for $20? Are they really going to create another entire bureaucracy to cross check every TIN to 1000’s insurance companies coverage database? Yikes!</p>
<p>I need to brave the website again, but I have to build up my nerve! I am bound to get through eventually!</p>
<p>Interesteddad, you told your daughter to go without insurance, right? I figure she is around 27 years old.</p>
<p>Do it late at night or really early ML. Let us know.</p>
<p>The penalty is 95 or 1% of your income. </p>
<p>That could be a lot.</p>