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ACA Penalty for Non-Insurance Under Fire

The Trump administration has reportedly prepared an executive order to no longer collect tax penalties from people who fail to have health coverage during the year, according to the Washington Examiner...
November 14, 2017

The Trump administration has reportedly prepared an executive order to no longer collect tax penalties from people who fail to have health coverage during the year, according to the Washington Examiner. President Donald Trump is said to be holding off on signing it to see if the repeal of the Affordable Care Act’s individual mandate will be included in the new GOP tax reform bill. If an executive order were signed by President Trump, many healthy people might drop their coverage, leaving exchange plans with higher numbers of sicker people who have costlier medical bills.

GOP leaders are concerned that reopening the ACA debate would cost them crucial votes on their tax bill. “What I don’t want to do is to add things that could again kill tax reform like healthcare died over there,” said House Ways and Means Chairman Kevin Brady (R-Texas)

Eliminating the mandate’s tax penalty on most Americans who do not purchase insurance would save the government $416 billion over a decade, and increase the number of uninsured by 15 million, according to a December 2016 estimate by the Congressional Budget Office (CBO).

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