What do you get when you cross the Affordable Care Act (ACA) with a rebellious spirit that says, “Nah, I don’t need health insurance!”? Well, once upon a time, you’d land a hefty penalty, akin to a dragon’s fiery breath (minus the scales and tail, of course). But is that still the case today? Let’s dive into the chaotic comedy that is the ACA’s minimum coverage penalty.
Rewind to 2014, when the ACA, popularly known as Obamacare, initiated the ‘individual mandate.’ This mandate was not a solo command performance, but a requirement for all individuals to have minimum health coverage. A penalty, otherwise known as the ‘Individual Shared Responsibility Payment,’ was levied on those who dared to tread the dangerous path of being uninsured.
However, fast forward to 2019, and the plot takes a turn funnier than a Shakespearean farce. The federal penalty was reduced to a big, round, bagel-like $0! The dragon had lost its fire, and the majority of states breathed a sigh of relief.
But not so fast! Just as in any good comedy, there are always a few twists. Some states decided to keep the dragon’s spirit alive and implemented their own penalties. These are the rebellious ones that said, “You can take away our federal penalties, but you can never take… our state penalties!” (Cue the dramatic music.)
So, if you’re in California, Rhode Island, Massachusetts, New Jersey, or the District of Columbia, watch out! These are the insurance ‘Game of Thrones’ kingdoms that have their own individual mandates and corresponding penalties.
But for the rest of the states, it’s pretty much a comedy of zero dollars. The penalty for not having minimum coverage is effectively no penalty at all. It’s like getting a ticket for laughing too loud at a comedy show, but the fine is a hearty handshake and a ‘carry on!’
So, there you have it. The ACA’s penalties for not having minimum coverage, once a terrifying dragon, are now more like a comedy show’s punchline – unless you live in the rebellious kingdoms, that is.
