Tag Archives: young people

Obamacare advertising withdrawn

Advertising Withdrawn:

Federally sponsored advertising encouraging people to enrol for health insurance has been withdrawn. This comes a week after the President’s inauguration.

Young people encouraged to enrol:

This move was instigated by the Trump administration. The deadline for enrolment expires on 31st January 2017. The Obama administration encouraged younger people to enrol.  This should be as soon as possible thus providing funds to take care of the older infirm citizens.

Politico reported that of the $60 million spent, $5 million in advertising has been withdrawn. This amount will be returned to the government. The Department of Health and Human Services has stopped emails being sent to citizens encouraging enrolment.

A Replacement plan:

A replacement plan has yet to be unveiled by the Trump administration. Under the Affordable Care Act, most Americans must have some form of health coverage for most of the year or face a possible tax penalty.

A penalty will be charged:

Nothing happens if you don’t want Obamacare. No one will force you to buy it. If you don’t buy it, then the IRS will charge you a penalty if you are not exempt from paying it.

There are nine exemptions. The biggest one is the “affordability exemption”. If your cost for the lowest priced pan is 8% of your income or more, then it is deemed unaffordable for you. Therefore you are exempt from paying the penalty if you do not buy coverage.

If you are not exempt from paying the penalty the penalty and you still don’t pay it, the IRS can withhold the penalty from any overpayment in taxes you have made. In other words, they will take it out of your tax refund.

If you are self-employed and don’t get refunds or you adjust your withholdings to ensure you don’t get a refund, there is thus nothing the IRS is allowed to do.

Not illegal to pay the penalty:

The law specifically says the IRS cannot use liens, levies or any other method to recapture the penalty. This is because its not actually illegal not to pay the penalty.


If you get sick and want to sign up for Obamacare, you can do it at the next enrollment time for the individual market. If you don’t want to wait, then there are loopholes which allow you to sign up right away under the HIPAP law using a 2-person group guaranteed issue provision. Grab a friend and start a small group. You can have a plan pretty quickly.