The new health care law, set to go in effect January 2014, will require most Americans to purchase health insurance regardless of their preference to do so.
Americans who are not insured by 2014 will be required to pay a penalty. This individual mandate has strung up much controversy on how much control the federal government can have over the lives of Americans.
According to Wyoming Sen. Mike Enzi, it is important to curb this new government power. Sen. Enzi is cosponsoring legislation to repeal this individual health care mandate.
“We should not be forcing Americans to purchase any product, let alone health insurance,” Enzi said. “Mandates are built on the premise that government knows best and that a one-size-fits-all approach will somehow address the various needs of our very different states, cities and populations. We can and must make health care more affordable in this country, but we can do it by working together and not threatening people with penalties if they do not purchase insurance.”
The American Liberty Restoration Act, which hopes to strike the individual mandate from the Patient Protection and Affordable Care Act, was introduced this week by Senator Lamar Alexander of Tennessee and Senator Orrin Hatch of Utah.
Along with Senator Enzi, the American Liberty Restoration Act has 30 cosponsors.
The penalty for those who choose not to purchase health insurance will be $285 or one percent of the family’s income — whichever is greater. If by 2015 that family still has not paid, the penalty will rise to $975 or two percent of their income, again, whichever is greater. By 2016, it goes up to $2,085 per family or 2.5 percent.
For an individual adult, the penalty would be $95, $325 and then $625 over those same three years. The penalty amounts per child are half that of adults.
Though the majority of Americans will be required to abide by the new mandate, some individuals and families may be exempt. Such groups include people or families with very low incomes, those who are not required to file tax returns, members of certain religious groups or individuals who face insurance premiums that would exceed eight percent of family income, even after including employer contributions and federal subsidies.
Based on a study conducted by the Congressional Budget Office, an estimated four million people each year will choose to pay the penalty instead of receiving coverage.
The reason the Obama Administration is issuing required health insurance is to reduce overall costs. Because people who have health insurance are normally receiving regular checkups and other forms of preventative care, later health problems, which can be very expensive, are less likely to occur. The cost of primary physician care also is much less expensive than a visit to the emergency room.
In June when the Supreme Court upheld the mandate in a 5-4 decision, Obama called this settlement a win for Americans.
“With today’s announcement it is time for us to move forward to implement and, where necessary, to improve this law,” he said.
