I just stumbled across some interesting reading at the American Enterprise Institute [PDF]. Namely, this gem:
Health Care vs. the Penalty (on your federal taxes)
- Joe— a single, 26 year old, Indianapolis male making $40,000/year.
- Now pays approximately $131/month for health coverage.
- Removal of annual & lifetime limits, no pre-existing conditions = PRICE WILL RISE.
- Under PPACA [the healthcare bill], Joe will likely pay around $200/month.
- Penalty for Joe to forego insurance under health care reform = Approximately $400 (greater of $95 or 1% of income in 2014).
- Joe forgoes [insurance coverage] and breaks his arm—he will still receive care and be immediately enrolled.
I had this discussion with my dad yesterday. I, as a sane human being, will be looking very closely at healthcare come 2014 when I will be 27 years old. I currently pay $100 a month for insurance. If the penalties for NOT enrolling in healthcare are less than paying for insurance, you’d better believe I’ll just pay the penalties. It’s what everyone in Massachusetts does now.