Fines for Those Individuals Without Health Insurance
Although more than 2.5 million new individuals purchased health insurance through the government enrollment system starting on November 1, a remaining 10.5 million people in the United States still do not have proper coverage and therefore remain exposed to potential penalties. One of the biggest reasons for the low enrollment could be that people choose to pay the fine for going without health insurance rather than pay the big sums associated with healthcare insurance premiums. Individuals in St. Louis and beyond are thinking about whether the cost of the penalty is really all that discouraging in comparison with the types of policies available from the health insurance marketplace.
According to a recent research study by the Kaiser Family Foundation, approximately 7 million individuals who were eligible for coverage through the health insurance in exchange would actually save more money by paying the penalty associated with going uninsured rather than paying for the premiums for health insurance. This has been one of the biggest challenges for the Obama administration, officials from which were hopeful that the penalty would act as more of a deterrent for people skipping coverage. Instead, it looks like individuals and families are weighing the costs of getting coverage with the costs of being hit with the penalty and they are opting to go without coverage.
According to research from the New York Times, the cost of deductibles and premiums for healthy individuals could go as high as $10,000 per year, which is significantly more money than the $695 per adult or 2.5% household income penalty that could be levied against individuals who go without health insurance in 2016. More than 7.5 million individuals in America chose to pay the penalty rather than purchase insurance in recent years.
The average fine, according to the Internal Revenue Service, was approximately $200. A further 12 million individuals were exempted from paying the fine because they did not make enough money to do so. If you have not obtained proper health insurance coverage for 2016, you will be responsible for paying a penalty associated with your choice to go uninsured.
While you might be considering that the deductibles and premiums outweigh the actual cost comparison with the penalty, this is not the only thing you should take into account when making your healthcare decisions. One major healthcare event (like surgery for an appendix or spleen, recovering from a car accident, or a sudden major diagnosis) can generate costly medical bills very quickly. Health insurance can serve as an important buffer if one of these issues impacts you. Otherwise, you could be left paying out of pocket for very expensive treatments and tests.
If you have made this decision as a result of the fact that the deductibles and cost may be simply far too high in comparison with the penalties, you are certainly not alone. For more information about staying healthy and things you need to know about the health insurance marketplace, stay tuned to Senior Health Solutions for more details, or contact us to learn how we can help you find the right healthcare solutions for you and your family. We serve clients in St. Louis and throughout Missouri, Arkansas and Illinois. Call 636-244-4415 or contact us online today.