Hat Tip: Health Care Reform Assumes Millions Would Pay Fine Rather Than Get Coverage
The nonpartisan Congressional Budget Office estimated in its study last week that the House bill would bring in $167 billion over 10 years — $33 billion from fines paid by individuals who decline to buy insurance, and the rest from employers who don’t offer insurance to workers or contribute enough toward premiums.
Ernest Istook, a former Republican congressman from Oklahoma who is now a fellow at the conservative Heritage Foundation, calculated that anywhere between 8 million and 14 million people would end up paying the fines.
This raises a few problems, he said. First, if those millions somehow get covered and don’t pay the fine, then the health program is faced with a budget hole.
Second, he said, it speaks to a flaw with the insurance packages that are being offered. “If you say people would rather pay $167 billion in penalties rather than buy insurance under your new plan, what’s wrong with your new plan?” he asked.
No matter how you look at this Pelsicare does not provide insurance to the uninsured without creating a debt. Either they pay a fine, or they take the government plan … if they take the Government plan then where is the money to pay for their coverage?