Penalties for not having insurance


Individuals

Those who don't purchase insurance by March 31, 2014, and don't qualify for Medicaid, will be assessed a tax of $95 (or 1% of income, whichever is higher) in 2014. Many young (immortal-minded) consumers might opt to drive a nicer car or live in a nicer place rather than pay $2K – $5K per year for health insurance. In 2015 It increases to $325 (or 2% of income), and in 2016 it increases to $695 (or 2.5% of income). 

Individuals with an annual income of $50,000 would, be subject to a $500 penalty for not having health insurance. The maximum penalty for individuals not carrying health insurance is about $2,500, and $12,000 for families. According to the way the law is written: penalties will be deducted from "TAX REFUNDS".    
So, what if you don't get refunds???

Approximately 90% of uninsured won't pay a penalty 

The architects of the health law wanted most Americans to carry insurance or pay a penalty. However, almost 90% of the nation's 30 million uninsured won't pay a penalty under the Affordable Care Act in 2016 because of a growing batch of exemptions to the health-coverage requirement.

The Obama administration has provided 14 ways people can avoid the fine based on hardships, including suffering domestic violence, experiencing substantial property damage from a fire or flood, electricity shut-off notice and having a canceled insurance plan. Those come on top of exemptions carved out under the 2010 law for groups including illegal immigrants, members of Native American tribes and certain religious sects.  

How is the penalty enforced?

The ObamaCare doesn't let the IRS come after you if you don't pay the penalty. Failing to pay isn't a crime. The government can't garnish your wages or put liens on your property to collect the money. Basically, the only way the IRS can get the dough against your will is to deduct it from your tax refund. What's more, the IRS really doesn't have any way of checking whether you're really insured if you say so when you file taxes.

Employers

A book recently released by one of the architects of ObamaCare (Ezekiel Emanuel) admits that they expect only 20% of employer-based health insurance will still be available within 10 years. This is not surprising considering that employers with over 50 employees will only be fined $2,000 per year per employee for whom they do not provide health insurance. As businesses opt to pay a small penalty to drop their employees’ private health insurance, said employees will have to enroll in the exchanges or face a penalty.