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house Bill H.R. 954

Do People Need an Exemption From the Individual Mandate Tax If Their Health Plan is Terminated?

Argument in favor

People who enrolled in a CO-OP health insurance plan that was terminated or discontinued shouldn’t have to pay the tax penalty for not having health insurance.

B.R.'s Opinion
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09/28/2016
No one should have to pay a tax penalty for not having health insurance. Eliminate this ridiculous mandate.
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Dan's Opinion
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09/28/2016
why should one be taxed for not having insurance when their health plan was terminated through no fault of their own ?
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09/27/2016
"Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience." - C.S. Lewis. "There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him." - Robert A. Heinlein. The individual mandate is unjust and, more importantly, immoral. I support any exemption for any person for any reason.
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Argument opposed

This is just another attempt to undermine the Affordable Care Act. Besides, people who lose coverage can enroll in a new plan and won’t face a fine if they act fast.

operaman's Opinion
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09/27/2016
In this case, if you really feel the pain of what Obamacare created, you may wake up and figure out government run healthcare is a disaster. Most government programs need cash infusions to survive. And face the facts, Medicaid, Medicare, Social Security, Unemployment and Welfare Programs or the Federal Disability Insurance Program. And social underwriting of our national flood insurance program never comes close to breaking even.
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Dtewfik's Opinion
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09/27/2016
Stop making loopholes on loopholes. Either solve for the root cause of implement a new solution.
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Trevor's Opinion
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09/28/2016
This is why we have exemptions for those without insurance for 1-2 months. There is no need to add additional exemptions for this.
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What is House Bill H.R. 954?

This bill would exempt people from the individual health insurance mandate if they were covered by a health plan issued under the Consumer Operated and Oriented Plan (CO-OP) program that was eventually terminated. It would exempt those people from having to pay a tax penalty for the remaining months of the year if their health insurance plan is terminated midway through the calendar year. The bill would retroactively cover people who lost coverage and faced a tax penalty after December 31, 2013.

Under current law, individuals are required to be enrolled in a health insurance plan or pay a tax penalty for each month in which they aren’t covered. The fine is currently $695 for an adult who doesn’t have coverage for the entire year, and it’s assessed on a monthly basis so each month without coverage would result in a $57.91 penalty. There’s also an existing exemption for people who are only uncovered for one or two months so that they don’t have to pay the fee at all.

Impact

People enrolled in a CO-OP health insurance plan that’s terminated; health insurers; and the IRS.

Cost of House Bill H.R. 954

The CBO estimates that enacting this bill would increase budget deficits through reduced tax revenue by $4 million over the 2016-2026 period.

More Information

In-Depth: Sponsoring Rep. Adrian Smith (R-NE) introduced this bill because “people just seeking to do the right thing should not be penalized” if the health insurance plan they purchase is abruptly terminated through no fault of their own. In a press release, he called his bill “a simple solution to provide a measure of relief for consumers who followed the law and purchased health insurance.”

Rep. Jim McDermott (D-WA) blasted Republicans for the failure of health insurance co-ops:

“Don’t believe the Republicans when they pretend to care about consumers harmed by co-op closures. Republicans wanted the co-ops to fail from the start. For years, they systematically underfunded the program, undermined it and made it virtually impossible for a co-op to succeed.”

This legislation was passed by the House Ways and Means Committee on a voice vote, and it currently has the support of seven Republican cosponsors in the House.


Of Note: Numerous co-op health insurers have failed since their creation, including those offering plans in states like Arizona, Louisiana, New York, Nebraska, Oregon, South Carolina, Utah — and as a result over 500,000 Americans have lost their coverage according to the Wall Street Journal.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user Images_of_Money)

AKA

CO-OP Consumer Protection Act of 2016

Official Title

To amend the Internal Revenue Code of 1986 to exempt from the individual mandate certain individuals who had coverage under a terminated qualified health plan funded through the Consumer Operated and Oriented Plan (CO-OP) program.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed September 27th, 2016
    Roll Call Vote 258 Yea / 165 Nay
      house Committees
      Committee on Ways and Means
      Health
    IntroducedFebruary 12th, 2015

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    Universal health care now please.
    Like (27)
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    In this case, if you really feel the pain of what Obamacare created, you may wake up and figure out government run healthcare is a disaster. Most government programs need cash infusions to survive. And face the facts, Medicaid, Medicare, Social Security, Unemployment and Welfare Programs or the Federal Disability Insurance Program. And social underwriting of our national flood insurance program never comes close to breaking even.
    Like (12)
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    No one should have to pay a tax penalty for not having health insurance. Eliminate this ridiculous mandate.
    Like (12)
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    why should one be taxed for not having insurance when their health plan was terminated through no fault of their own ?
    Like (11)
    Follow
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    "Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience." - C.S. Lewis. "There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him." - Robert A. Heinlein. The individual mandate is unjust and, more importantly, immoral. I support any exemption for any person for any reason.
    Like (10)
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    No US citizen should have to pay a tax because they don't possess healthcare, whether by involuntary circumstances or voluntary choice. DEPLORABLE!
    Like (9)
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    Stop making loopholes on loopholes. Either solve for the root cause of implement a new solution.
    Like (8)
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    This is an extension of my fundamental disagreement with the ACA. People should not be penalized for not buying something. In this case, especially if they've done it and been dropped.
    Like (7)
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    My insurance plan has been cancelled twice since Obamacare took over. They caused the cancellation, so why should we be taxed because of it? People should not be forced by the government to buy any product. It's an abuse of their powers.
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    The system we have isn't perfect and I feel a exemption for the same year that the insurance was cancelled is more than fair. That being said I wish we would just move to a universal system already and stop wasting time on broken system.
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    I can't afford the ACA nor am able to agree with it! It's become a nightmare and being on SS and barely able to live much less do anything else!
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    YEA! This is a no brainer. That citizens in the richest country in the world die of lack of healthcare is disgraceful. I have friends in both Malaysia & Egypt who have to be convinced that my sister's story is true. (She died of cancer because she couldn't afford treatment!) At the very least, losing your health coverage should result in a tax break or other form public assistance.
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    No more mandates! The Unaffordable Care Act with its huge premium increases and deductibles says it all. If this is such a wonderful program please tell me why politicians exempt themselves??
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    This is why we have exemptions for those without insurance for 1-2 months. There is no need to add additional exemptions for this.
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    This wouldn't be an issue if universal healthcare had been implemented instead of the mandatory purchasing of private health insurance. I wonder who really benefits from ObamaCare the people or the insurance industry?
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    Yeah, it's only fair!
    Like (3)
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    Enough taxes already. We didn't have all the taxes we have now before the federal reserve got their hands on our country's wealth, we had schools, law enforcement, civil service and a strong military. Check out he creature from Jekyll Island. You can find it on YouTube. It talks about how the Federal Reserve. Spoiler alert: the Federal Reserve is not federal nor does it have a reserve.
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    In reality we wouldn't be having this vote if Obama had kept his nose out of our healthcare in the first place
    Like (2)
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    Losing a job is hard enough, taxing people on top of it is ridiculous.
    Like (2)
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    You should never tax anyone for not having insurance of any kind it's unconstitutional, it's tyranny, and a good way to insure that the prices go way higher that they ever should
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