The E Report: Defining The Fine To Feel Fine

by Ehi Ekuase

Things that are expensive: Paintings at the Lourve in France, opening a Swiss bank account, buying a house, Education, Ignorance (overstand me), a pair of Air Yeezy 2’s, and waking up in a new Bugatti; but as expensive as these things are, rarely is anything more expensive as healthcare. It’s less than likely that the regular person will buy the Mona Lisa or drop the $100,000 minimal deposit needed open a Swiss bank account, it’s less than likely that the average individual will get a pair of Air Yeezy 2’s and wake up in a Bugatti the following day AND not everyone would want to get a college degree. All that was previously listed (with the exception of ignorance) will not have a direct effect on your general wellbeing if you choose to not spend any money on them; BUT healthcare on the other hand is something that is expensive and directly effects your wellbeing…unless you were born with a healing factor that allows you to recover from virtually any wound, disease, or toxin at an accelerated rate—you will inevitably spend money on something(s) that will help you get healthy (and inevitably cost yourself money during the time lost during recovery).

Now, given that government spending on Healthcare coverage (Medicare and Medicaid) is increasing

and with the cost of healthcare methods inevitably increasing due to factors such as the rising cost of malpractice insurance for doctors (which involves the increase in additional unnecessary test being administered by hospitals and doctors to solely to cover their asses), increasing Emergency Room visits as results of violence and self destructive behaviors in society, etc--the Affordable Care Act (AKA "Obamacare") was created to produce a butterfly affect of reform in the healthcare system to ultimately reduce the burden placed on the government. Like car insurance, all citizens will be required to have coverage or face a penalty.

The penalty of the Affordable Care Act is something that has warranted much concern from the people, but as it stands now, consumers don’t have to report on whether they have coverage or are exempt from the mandate until they file their 2014 income tax return, which are due April 15, 2015. (Insurers will be required to provide everyone they cover with information that will help them demonstrate they individuals who don’t obtain health coverage in a given year (and are not exempt from the mandate) are subject to a fine of $95 for an individual or 1% of family income, whichever is greater. In 2015, the penalty increases to $325 per adult, or 2% of family income, whichever is greater. If an individual does not have sufficient health coverage by the deadline, the “IRS will hold back the amount of the fee from any future tax refunds,” according to HealthCare.gov, the government’s marketplace website. If the individual does not get a tax refund, the “IRS could carry over the sum due and apply it against any refunds in future years. On a joint return, the penalty of one joint filer could be applied against the refund due to the other joint filer,” as stated by Mark Luscombe, principal analyst at CCH Tax & Accounting North America.

Timothy Jost, a professor at the Washington and Lee University School of Law and coauthor of the casebook “Health Law” says,"If you don’t pay it, all they can do is wait until they owe you some money and take that. Or probably just send you a letter every now and then reminding you that you owe money to the IRS”. Importantly, the law also prohibits the IRS from using liens or levies to collect any “payment you owe related to the law, if you, your spouse or a dependent included on your tax return does not have minimum essential coverage,” according to the IRS, meaning that the IRS cannot go into a person’s “checking accounts anyway and just take the money.

It's going to be interesting to see how all this pan's out. Until next time, stay healthy and may you one day wake up in a new Bugatti.