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I've been told that under the Affordable Care Act (ACA) the premiums for the insurance programs are not affordable for individuals, especially for small-time entrepreneurs. Citizens basically have a choice... Pay for the plan to avoid being find which leaves you unable to afford the insurance premiums or pay the fine.

Is this a correct assessment of the program?

randomblink
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If your income is low enough to be unable to afford insurance, than you might qualify for a subsidy

After a quick google search I've found a tool that can estimate the size of the subsidy that you might get under the Affordable Care Act.

Sam I am says Reinstate Monica
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    I think you can also have the penalty waived if you can't afford insurance. – Publius Oct 10 '13 at 17:35
  • Any links to that option? – randomblink Oct 10 '13 at 17:37
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    @Avi That would defeat the very purpose of the insurance mandate, which is to prevent hospitals taking a loss on people who are unable to pay their bills – Sam I am says Reinstate Monica Oct 10 '13 at 17:39
  • No Sam I Am, it would still penalize people above a certain income level (presumed to able to afford insurance) who still don't buy it. I'm not sure though, I do need to check. – Publius Oct 10 '13 at 17:43
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    Check out this page (https://www.aetna.com/health-reform-connection/questions-answers/individual-mandate.html). It says that the penalty will not apply to individuals who "cannot afford coverage based on formulas contained in the law". And there are a few other poverty-related exemptions. – Publius Oct 10 '13 at 17:45
  • @Avi that still defeats the purpose of the mandate. If people who can't afford coverage still go without coverage, than hospitals will still take a loss when they treat those people. – Sam I am says Reinstate Monica Oct 10 '13 at 17:54
  • @SamIam I believe they'd be covered by the subsidy in that situation, no? (Subsidizing preventative care is likely to cost less than subsidizing emergency room care) –  Oct 10 '13 at 18:04
  • @DA. having insurance paid for by a subsidy is a lot different than not having insurance – Sam I am says Reinstate Monica Oct 10 '13 at 18:27
  • @SamIam yes, true. I guess the question is worded a bit oddly. The penalty is if you do not HAVE insurance independent of your ability to pay for it. I suppose the answer is 'no' you are not penalized based on your ability to afford insurance. –  Oct 10 '13 at 18:30
  • @SamIam The point is that more people will be able to afford coverage because of the subsidies, but if even when consider those, one still cannot afford insurance, then the penalty doesn't apply. It doesn't defeat the purpose of the individual mandate because the individual mandate still ensures that a substantially greater number of people will either have insurance or be paying the government in lieu of that. – Publius Oct 10 '13 at 19:20
  • I also think it is a leap to say just because someone makes above a certain amount that they can afford to pay for health insurance. Everyone's financial situation is different and it may well surprise many people to find out that a large percentage of people that make a large income are on the edge of bankruptcy and week-to-week with bills. Particularly small businesses. Reinvesting and using that income is how they are able to get the large income to begin with. It doesn't mean that income is free to use as they please. – Dunk Oct 14 '13 at 18:09