essays on self-injury risk management dissertation https://beaschoolnurse.com/doctor/cialis-uk-nhs-card/31/ see veagra compro 100 mg thesis abstract sample business essays on civil rights for african americans cytotec en mexico enter software for student term papers el viagra sirve para durar mas en la cama see url https://approachusa.org/reflective/base-details-poem-analysis-essay/25/ https://chanelmovingforward.com/stories/writing-a-prospectus-for-a-research-paper/51/ https://companionpetstn.com/medication/levitra-ausprobieren/32/ watch stonehedge thesis viagra in malaysia singapore i rigoberta menchu essay melatonin dreams uni students paying for essays lamictal and weight https://cpchawaii.edu/lptf/papers.php?rewriter=the-art-of-problem-solving-pre-algebra https://eagfwc.org/men/harga-viagra-usa/100/ cialis tabletta elad do my family and consumer science personal statement order college papers online essays analysis of dog's death nyc resume writing service a six point essay https://efm.sewanee.edu/faq/dupont-essay-2012-winners/22/ The Affordable Care Act requires most Americans to buy qualifying health insurance coverage. Fail to comply with this mandate and there’s a financial penalty waiting for you come tax time. But when is a penalty not a penalty? When is a mandate not a mandate? Hey kids, let’s do some math.
The penalty for going uninsured in 2016 is $695 per adult and $347.50 per child up to a maximum of $2,085 or 2.5% of household income, whichever is greater.
To determine the cost of coverage we’ll use the second-lowest silver plan available in a state. That’s the benchmark used to calculate ACA subsidies and in 2015 silver plans comprised roughly 68% of policies sold through an exchange. Even more important, I found a table showing the cost of the second-lowest cost Silver plan for 40 year olds by state, but I couldn’t find a similar table for other metallic levels.
The least our 40-year-old could spend on the second-lowest Silver plan this year is $2,196 in New Mexico; the highest premium is $8,628 in Alaska. The median average is $3,336. Divide the penalty by the premium and you get 32% of the cheapest premium and 21% of the median average premium. Put another way, paying the penalty saves our 40-year-old consumer $1,500 in New Mexico and over $2,600 in the mythical state of median average.
I did find a table showing the national average premium a 21-year-old would pay for a bronze plan: $2,411. In this situation the $695 penalty amounts to just 29% of the policy’s cost, a savings of over $1,700.
The purpose of this post is not to encourage people to go uninsured. I think that’s financially stupid given the cost of needing health insurance coverage and not having it. And, personally, I support the individual mandate. I also understand the political obstacles to establishing a real penalty for remaining uninsured.
However, I also believe the individual market in this country is in trouble. (More on this is a later post). Adverse selection is a contributing cause to this danger. The individual mandate is supposed to mitigate against adverse selection. The enforcement mechanism for that mandate, however, is a penalty that, for many people, is no penalty at all.
That’s not just my opinion. That’s the math.
A version of this article was originally posted on LinkedIn.