Democrats say Trump's #taxreform & elimination of the #ObamaCare penalty hurts the middle class, but 80% of the people who paid the penalty in 2016 earned less than 50% a year. https://t.co/1ucezrx9fr #tcot #tlot
— IBDeditorials (@IBDeditorials) January 5, 2018
... the tax reform bill — signed into law on December 22 — effectively repeals ObamaCare's individual mandate, which fines people for not buying ObamaCare-compliant health plans. Right now, people must pay a penalty of $695 per adult and $347.50 per child, up to a maximum of $2,085 or 2.5% of household income — whichever is greater — if they fail to obtain such coverage....
Right now, term health plans are of limited appeal to consumers, who must pay the individual mandate penalty if they buy them. Our 40-year-old San Franciscan would pay a $1,375 fine — 2.5% of his income — if he opted for the $141 term health plan. The mandate penalty wipes out most of the savings he'd enjoy from choosing the cheaper plan.
As a result, many people grit their teeth and pay for overpriced ObamaCare-compliant coverage.
Without the mandate penalty, millions of healthy people who currently shop in the exchanges — even middle-income people who receive small ObamaCare subsidies —would instead purchase more affordable, year-long term plans. Only people with pre-existing conditions and those with low incomes — who receive subsidies that cover virtually the full cost of ObamaCare plans — would remain in the exchanges....
CBO: Repeal of Obamacare individual mandate lowers cost of CHIP https://t.co/fQZmxp66em pic.twitter.com/Xbj4Qemav7
— Washington Examiner (@dcexaminer) January 6, 2018
