Senate Proposal: Up to $3,800 Fine for Families Without Health Insurance
Senate Proposal: Up to $3,800 Fine for Families Without Health Insurance
Sept. 9, 2009 – A health care plan being proposed in the U.S. Senate would levy a fine of up to $3,800 for American families who don’t purchase health insurance, the Associated Press reported.
A plan reportedly being pushed by Montana Senator Max Baucus would make health insurance mandatory with annual penalties for not purchasing health insurance starting at $750 for individuals and $1,500 for families. Based on their total annual earnings, individuals could be fined up to $950 and families $3,800 each year for not purchasing health insurance coverage, according to the Associated Press.
Baucus’ plan reportedly intends to make health insurance coverage available for most Americans by requiring insurers to accept all who apply no matter their current health or age. But his plan also would require smokers to pay higher premiums than non-smokers and for the elderly to pay up to five times more for the same health insurance coverage provided to a 20-year-old.
Households earning up to three times the current federal poverty level of slightly more than $22,000 annual income for a family of four might receive tax credits for paying health insurance premiums, and small businesses also might receive tax credits for providing health care benefits. Households annually earning between three and four times the federal poverty level would not have to pay more than 13 percent of their annual income to maintain health insurance coverage, according to the Baucus plan.
While Baucus’ proposed Senate plan does not include a public option, several Congressional Democrats might use a public health plan as a safety net in case the health insurance industry cannot contain costs and make purchasing health insurance more affordable, according to the Associated Press. Baucus has said he wants to create nonprofit health insurance “co-ops” to compete with private insurers instead of expanding existing public options or creating an entirely new one.
Baucus’ plan also would makes several potentially controversial changes to the nation’s health care system, including levying fees on health insurance companies, pharmaceutical companies, medical laboratories and clinics and companies that manufacture medical devices. Baucus says his proposal likely would not affect people working for large job providers and instead aims to increase health care availability for Americans unable to afford it now. Owners of small businesses and the self-employed would benefit the most from his plan, Baucus says.
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