Today, Ranking Member of the House Ways and Means Committee Dave Camp (R-MI) released a letter from the non-partisan Joint Committee on Taxation (JCT) confirming that the failure to comply with the individual mandate to buy health insurance contained in the Pelosi health care bill (H.R. 3962, as amended) could land people in jail. The JCT letter makes clear that Americans who do not maintain “acceptable health insurance coverage” and who choose not to pay the bill’s new individual mandate tax (generally 2.5% of income), are subject to numerous civil and criminal penalties, including criminal fines of up to $250,000 and imprisonment of up to five years.

In response to the JCT letter, Camp said: “This is the ultimate example of the Democrats’ command-and-control style of governing – buy what we tell you or go to jail. It is outrageous and it should be stopped immediately.”

Key excerpts from the JCT letter appear below:

“H.R. 3962 provides that an individual (or a husband and wife in the case of a joint return) who does not, at any time during the taxable year, maintain acceptable health insurance coverage for himself or herself and each of his or her qualifying children is subject to an additional tax.” [page 1]

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“If the government determines that the taxpayer’s unpaid tax liability results from willful behavior, the following penalties could apply…” [page 2]

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“Criminal penalties

Prosecution is authorized under the Code for a variety of offenses. Depending on the level of the noncompliance, the following penalties could apply to an individual:

• Section 7203 – misdemeanor willful failure to pay is punishable by a fine of up to $25,000 and/or imprisonment of up to one year.

• Section 7201 – felony willful evasion is punishable by a fine of up to $250,000 and/or imprisonment of up to five years.” [page 3]

When confronted with this same issue during its consideration of a similar individual mandate tax, the Senate Finance Committee worked on a bipartisan basis to include language in its bill that shielded Americans from civil and criminal penalties. The Pelosi bill, however, contains no similar language protecting American citizens from civil and criminal tax penalties that could include a $250,000 fine and five years in jail.

“The Senate Finance Committee had the good sense to eliminate the extreme penalty of incarceration. Speaker Pelosi’s decision to leave in the jail time provision is a threat to every family who cannot afford the $15,000 premium her plan creates. Fortunately, Republicans have an alternative that will lower health insurance costs without raising taxes or cutting Medicare,” said Camp.

According to the Congressional Budget Office the lowest cost family non-group plan under the Speaker’s bill would cost $15,000 in 2016.

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Hey, this is my turf! I'm the one here who bitches about the individual mandates. I'd much rather government just covered everybody and we could forget about insurance plans. But I'm confused by the following:

The JCT letter makes clear that Americans who do not maintain “acceptable health insurance coverage” and who choose not to pay the bill’s new individual mandate tax (generally 2.5% of income), are subject to numerous civil and criminal penalties.

Contrast with:

According to the Congressional Budget Office the lowest cost family non-group plan under the Speaker’s bill would cost $15,000 in 2016.

So, which is it? 2.5% of income (in my case about $20K), meaning $500 a year? That I could live with. Or is it $5,000 a year?

Also, would expats like us be required to buy this crappy insurance?

The 2.5% is the tax or "fee" for non-compliance--for not buying their crappy insurance. In my case $500 a year. The insurance would cost me $1,500 a year, which normally would be no problem, but I couldn't use the insurance outside the US, and $1,500 is a lot to pay just for just one month when I might choose to visit.

Although this guy is apparently against any health care reform, judging by the way he terms it "Pelosi Care", he makes the case that you and TB will not be required to buy into the insurance or to pay the 2.5 percent. The bill specifies certain classes of people who are exempt from the requirement to obtain health insurance coverage. Dependents (e.g., adult children who are in college or otherwise not financially independent) are exempt. Proposed I.R.C. section 59B(c)(1). Conscientious objectors – which I assume means Christian Scientists and adherents of other faiths that reject modern medicine – are also exempt. Proposed I.R.C. section 59B(c)(5). Most importantly to Knife Tricks, expats are exempt. Or, to be precise, expats – defined as U.S. citizens who are outside the country for at least 330 days in a 12-month period -- are "treated for purposes of this section as covered by acceptable coverage during such taxable year." Proposed I.R.C. section 59B(c)(3). A similar exemption applies to people who reside in U.S. territories like Guam or American Samoa. Proposed I.R.C. section 59B(c)(4). <link>

The good news is that the Senate won´t pass this! I can take comfort in that alone.

And why the hell do you even care?

I found the Knife Trick website after 20 minutes of Googling (it's amazing the amount of rightwing fear-mongering stuff I had to wade through first) and was keeping this in reserve in case TB sprung some of his disinformation. However, even KnifeTrick warns that the bill has not been finalized, and another website of expats in Israel was under the impression that expats would be hit up for some sort of premium--which is not surprising when you consider that senior expats are liable for Medicare part B premiums or must pay double once they return even when they cannot utilize the Medicare services outside the country.

In my case I wouldn't mind buying insurance if I could just utilize it for the month I'm in the States, but I guess that defeats the purpose of insurance. I sure as heck aint paying $1,500 for insurance I cannot use.

Although Israel have universal coverage, I'm not sure expats are covered. Perhaps that is the issue.

Had nothing to do with coverage in Israel. Had to do with expats living in Israel subject to the requirement to purchase American health insurance--which of course they couldn't even use.

Well, I don't think they have to buy it if they're covered. That's important. The expats in other countries with universal coverage are considered covered if their insurance should lapse here. If they're not covered by that countries coverage, they'll have to purchase the policy. At least that's kinda the way I read it. My daughter and her family are in Croatia, which has coverage. I haven't discussed it with her. Not even sure she's up to speed on the whole thing. They're coming back to the US in June anyway, so I guess the whole issue is moot for them. Hubby will be unemployed and working on his MBA full time, so they'll be buying something.

mom:

And why the hell do you even care?

Because you stupid bitch, it effects my whole family!

Why do you care?

Where are you reading it at all? Is it posted somewhere on the Internet? Does your local paper have a copy of it in print?

Why don´t you admit you don´t know what the fuck it says because you really don´t!

genedio:

I sure as heck aint paying $1,500 for insurance I cannot use.

How do you know you aren´t? You just going to tell Obama to fuck off. A lot of us want to, but you don´t have any idea what you are going to have to pay or when so most of your gibberish here is just that... gibberish!

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I bristle at the very idea of having "coverage", as in insurance coverage. What the hell business is it of Uncle Sam's to know whether I have insurance coverage in some foreign country or whether I pay my medical expenses out of pocket. That's Big Brother intrusion, and here I might just have to side with TB. I do happen to have some nominal insurance coverage through my work, but it sure as hell doesn't pay a dime for medical care back home. That's my real problem: I'd like to be covered for the three or four weeks I return Stateside. I imagine TB has the same problem.

As for paying the $1,500 insurance premia, I think I'd just opt to pay the tax, which would be about $500 in my case.