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The information on Groklaw is not intended to constitute legal advice. While Mark is a lawyer and he has asked other lawyers and law students to contribute articles, all of these articles are offered to help educate, not to provide specific legal advice. They are not your lawyers.

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Penalty higher than buying insurance. | 355 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Penalty higher than buying insurance.
Authored by: mupi on Wednesday, July 04 2012 @ 04:41 AM EDT
If the penalty is $60/mo.

$60 * 12 = $780/year

I currently pay about $300/mo for family coverage

$300 * 12 = 3600/year

If I pay the penalty, and I get sick, they can't turn me down. Why WOULDN'T I
pay $780/year instead of 3600/year, knowing I can't get turned down later, if I
do get sick?

But it's worse than that, really.

If you go out and buy cheap insurance not funded by your employer, really cheap
insurance can be purchase for about $3000/year. It doesn't cover much, but it
will pick up the tab if your hospitalized, at least. (although I think those
plans won't qualify under ACA, but they make the point).

PJ repeated that the cost of paying for the uninsured, costs me about $1000/year
in higher premiums. So, what we are saying is that to save me $1000/year, we
are going to make my neighbor spend $3000/year. Worse, if my neighbor qualifies
for the government to pay his insurance, then to save me $1000/year, you are
going to charge me (because I am part of "the people" and "the
people" are paying it) $3000. How does this make any fiscal sense at all in
any way? and that's assuming "catastrophic only" type coverage with
high deductibles, that won't help with a dr visit, but will cover you if you
wind up hospitalized. Maybe this makes sense if you allow for the fact that I
have family coverage, so it's costing me $3000 ($1000/insured), but what about
the guy I work with who has 8 kids and pays the same $300/month for family
coverage? Is he going to save $8000/year, out of the $3600 he spends? I don't
see any way to make the numbers add up in a way that makes sense, and isn't
going to cost way more than anybody wants to admit. We are only to July, for
crying out load, and already parts of the ACA that have already been implemented
have run out of money.


[ Reply to This | Parent | # ]

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