Obamacare question

I know a guy who does not have a job and does not have health insurance. He has no assets to speak of other than a very inexpensive place of residence. However, he is married to someone that has a half way decent income and he does odd jobs under the table. In addition, he just recently was involved in a car accident that required medical attention and for which he cannot pay. He says that if worse comes to worse, he will just send them $20 dollars a month for the rest of his life, and that if that is not good enough, they will get nothing.

So my question is, now that the IRS is running Obamacare and overseas the mandate to have health insurance, how will the IRS punish him for being a "bad" citizen? In addition, what will happen to countless millions like him? If these people have no real assets to speak of or income, what will the IRS do to them? Will they create a debtors prison?

Originally posted by whodey
I know a guy who does not have a job and does not have health insurance. He has no assets to speak of other than a very inexpensive place of residence. However, he is married to someone that has a half way decent income and he does odd jobs under the table. In addition, he just recently was involved in a car accident that required medical attention and for ssets to speak of or income, what will the IRS do to them? Will they create a debtors prison?

Whodey, I can probably actually help you on this one as I happen to know a lot about Medicaid eligibility rules, but can you please clarify the question? I'm sorry to do this, but the question is full of irrelevant tangents and compound questions that are confusing and/or self-contradictory. Some of the elements of the question also appear to assume their own answers.

I'd love to help. So let's take these one at a time. What is the first question? Try to make it as simple as possible. Do you want to know whether your friend is eligible for Medicaid?

Thanks.

Originally posted by sh76
Whodey, I can probably actually help you on this one as I happen to know a lot about Medicaid eligibility rules, but can you please clarify the question? I'm sorry to do this, but the question is full of irrelevant tangents and compound questions that are confusing and/or self-contradictory. Some of the elements of the question also appear to assume their own a ...[text shortened]... ple as possible. Do you want to know whether your friend is eligible for Medicaid?

Thanks.

How will the IRS punish him for not buying health insurance?

Originally posted by whodey
How will the IRS punish him for not buying health insurance?

I do not believe that it will. From your description, it does not sound as though his income is high enough to meet the mandate threshold.

Originally posted by sh76
I do not believe that it will. From your description, it does not sound as though his income is high enough to meet the mandate threshold.

His wife could put him on her insurance, but they decided it was too costly, so they did not.

So you are saying that he does not have anything to worry about? What about his wife? Will the IRS go after his wife for not putting him on her insurance?

What exactly is the mandate threshold?

Originally posted by whodey
His wife could put him on her insurance, but they decided it was too costly, so they did not.

So you are saying that he does not have anything to worry about? What about his wife? Will the IRS go after his wife for not putting him on her insurance?

What exactly is the mandate threshold?

This article explains the mandate threshold pretty well:

http://healthreform.kff.org/notes-on-health-insurance-and-reform/2012/march/the-individual-mandate-how-sweeping.aspx

It's a sliding scale based on income.

The upshot is that if you really can't afford insurance, it's probably subsidized. And if after the subsidies, you still can't afford it, you're probably not covered byt eh mandate.

Originally posted by sh76
This article explains the mandate threshold pretty well:

http://healthreform.kff.org/notes-on-health-insurance-and-reform/2012/march/the-individual-mandate-how-sweeping.aspx

It's a sliding scale based on income.

The upshot is that if you really can't afford insurance, it's probably subsidized. And if after the subsidies, you still can't afford it, you're probably not covered byt eh mandate.

So according to the ariticle it seems that a married couple making over $19,000 collectively would require health coverage. As I said, she makes more than $19,000, so it would seem that the mandate would force them to buy health coverage. I assume that they will be OK till 2014, right?

So how will this be enforced? Will we have to put our health care information on our tax forms? If so, if they file seperately, would the mandate still be in place?

And lastly, assuming they are in violation of the mandate, what will the penalties be? And if they refuse to pay the penalty, how will the IRS come after them?

Originally posted by whodey
So according to the ariticle it seems that a married couple making over $19,000 collectively would require health coverage. As I said, she makes more than $19,000, so it would seem that the mandate would force them to buy health coverage. I assume that they will be OK till 2014, right?

So how will this be enforced? Will we have to put our health care in ...[text shortened]... will the penalties be? And if they refuse to pay the penalty, how will the IRS come after them?

Those are all good questions and I don't have the answers off the top of my head, but my understanding is:

1) The mandate will not take effect until 2014.

2) People with incomes far exceeding $19,000 will have their insurance subsidized to the point of affordability. This is true under Medicaid now, but to a greater extent under the ACA.

3) The penalty will be part of the tax return and the IRS will enforce it as it would any other tax.

4) The amount of the penalty will be a relatively small amount.

http://www.forbes.com/sites/aroy/2012/07/09/obamacares-dark-secret-the-individual-mandate-is-too-weak/

Originally posted by sh76
4) The amount of the penalty will be a relatively small amount.

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I would guess that they would pick this opton then and just mail them $20 for the rest of his life. The only question becomes, how will they try to collect the fine when he does not pay? Will they try to come after his house or his wifes income?

Originally posted by whodey

Has he looked into the possibility that he is Medicaid eligible either under the old rules or the ACA?

Rather than worrying only about not being insured and paying the penalty, he might be able to get actual coverage.

Wrong answers, sh76. I think the answer whodey is looking for is that IRS agents will come over to his house, take it, rape his wife and beat him up.

Originally posted by sh76
Has he looked into the possibility that he is Medicaid eligible either under the old rules or the ACA?

Rather than worrying only about not being insured and paying the penalty, he might be able to get actual coverage.

No, I doubt it. Do you have a web site showing Medicaid eligibility or do you know the criterea by chance?

Originally posted by whodey
I know a guy who does not have a job and does not have health insurance. He has no assets to speak of other than a very inexpensive place of residence. However, he is married to someone that has a half way decent income and he does odd jobs under the table. In addition, he just recently was involved in a car accident that required medical attention and for ...[text shortened]... ssets to speak of or income, what will the IRS do to them? Will they create a debtors prison?

"Countless millions"?🙄🙄

Originally posted by whodey
No, I doubt it. Do you have a web site showing Medicaid eligibility or do you know the criterea by chance?

It varies by state (and sometimes by county). Are we referring to Ohio? Which county?

Originally posted by sh76
It varies by state (and sometimes by county). Are we referring to Ohio? Which county?

West Virginia. I have no idea which county