The odds that Americans without health insurance will sign up for coverage increase along with the fine for being uninsured, according to a recent Gallup poll.
The poll found when the annual fine for not having insurance was just $95, 46 percent of the uninsured said they would be more likely to pay the fine than to get coverage. However, if the penalty was $500, only 32 percent said they would prefer to pay the fine over signing up for health insurance. Faced with a hypothetical $1,000 fine, 28 percent said they would still prefer to pay the penalty, suggesting the influence of the fine levels off somewhat at that penalty level.
This year, under the Patient Protection and Affordable Care Act's individual mandate, American adults and their dependents must have health insurance or pay a fine — $95 or 1 percent of household income, whichever is greater. The fine increases to $325, or 2 percent of taxable income, in 2015 and $695, or 2.5 percent of income, in 2016.
This suggests the higher financial penalties in the next couple of years could drive a significant amount of Americans who remain uninsured in 2014 to seek health insurance coverage. However, the penalty's ability to drive significant enrollment could taper off when the average fine reaches between $500 and $1,000, according to
Furthermore, the poll found people who perceived themselves to be in good health were more likely to prefer paying a fine over getting health insurance. For instance, 33 percent of those who reported they were in excellent or very good health said they were more likely to pay a $1,000 fine than sign up for coverage, compared with 23 percent of those who said their health was fair or poor.
A Gallup poll released last week found the
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