CBO report finds more consumers will face ACA individual mandate penalty
Posted on September 19, 2012 | No Comments
According to a new Congressional Budget Office (CBO) report, about six million people will face tax penalties in 2016. This mean that two million more Americans than initially projected will face penalties from 2017 to 2022. These penalties translate into $7 billion. The CBO reported that 85 percent of the increase can is attributable to higher unemployment rates, lower wages, and “technical updates.” CBO attributed little to the Supreme Court decision to make optional Medicaid expansion.
This number makes up just a fraction of those who will remain uninsured after full Affordable Care Act (ACA) implementation – 30 million in total, according to CBO. Those exempt from the ACA’s minimum coverage provision include illegal immigrants, low-income individuals, those without affordable insurance options, American Indian tribe members, and individuals whose religious beliefs precludes them from entering the market.
The U.S. Government Accountability Office (GAO) has issued a report that examines ways to encourage individuals to voluntarily obtain health insurance. GAO was asked by Congress to undertake the report due to the chance "...that legislative or judicial action could result in a change to, or elimination of, the mandate..." and the report is based on multiple interviews from experts regarding alternative approaches to the individual mandate to purchase health insurance under the Affordable Care Act (ACA).