Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

How do you pay to stay out of Obamacare?

If you opt to stay out, how does it work?

7 Answers

Relevance
  • ?
    Lv 5
    7 years ago

    Going uninsured in 2014 will put most people out of compliance with the law in 2014. The primary thrust of the law is that it requires most consumers who don’t have coverage through an employer (or Medicare or Medicaid) to purchase coverage on their own. For people earning less than 400% of the federal poverty level, subsidies may be available to make coverage more affordable.

    If you go uninsured for more than three consecutive months in 2014 you may be subject to a tax penalty of $95 or 1% of your income (whichever is greater) when filing your 2014 federal tax return. If you don’t earn enough money to be required to file a federal tax return, you will not face a tax penalty for going uninsured in 2014. Penalties will increase in succeeding years.

  • ?
    Lv 7
    7 years ago

    You cannot choose to be insured or not be insured. The IRS goes by your tax return. If you are exempt for a legitimate reason, or you cannot afford the cheapest plan on the exchange, you wont have any tax penalty. If you are on a government program or insured by other means, you dont pay the tax. The tax penalty can be collected only from any refund you have, no other way. I am sure those people who dont file a tax return, wont pay any tax penalty for not being insured.

  • 7 years ago

    You don't "pay to stay out". In fact, you don't do anything to "stay out".

    If you have other health insurance, then you do nothing. You're out of Obamacare if you have other insurance and you don't do anything to get into Obamacare.

    If you don't have insurance, and you don't want insurance, then you do nothing right now.

    If you had no insurance during 2014, then, when you file your 2014 taxes in 2015 (over a year from now), the money that you "pay" is subtracted from your refund.

    If you had other health insurance for 2014, then you don't pay anything, and nothing is taken from your tax refund.

  • You can emigrate to a country with "FREE"(it is not free, but everyone pays toward it via their taxes, no, no free lunches) health coverage (UK) or in a country without health coverage at all (somewhere in Africa). If you are from the groups of excluded : on religious base, indian tribe, amish ...etc., you have do not worry at all. They have options to exclude themselves.

  • How do you think about the answers? You can sign in to vote the answer.
  • 7 years ago

    If you don't have health insurance, then next year you pay the higher of $95 or 1% of your income.

  • 7 years ago

    Obamacare is a law.

    The only way you "stay out" is don't live in the USA.

  • 7 years ago

    The IRS will enforce the fine.

Still have questions? Get your answers by asking now.