The Truth About Obamacare

This excerpt  from the Patient Protection and Affordable Care Act explains the so-called individual mandate.  If you can read it, then YOU are SMARTER than Congress.  If you can read it and understand it, the you are smarter than ANYBODY.  If you can read it and stay awake, you are probably taking ritalin.   And for you liberals:  are you sure you like this law?

‘SEC. 5000A. REQUIREMENT TO MAINTAIN MINIMUM ESSENTIAL COV- 

ERAGE. 

‘‘(a) REQUIREMENT TO MAINTAIN MINIMUMESSENTIAL COV- 

ERAGE.—An applicable individual shall for each month beginning 

after 2013 ensure that the individual, and any dependent of the in- 

dividual who is an applicable individual, is covered under min- 

imum essential coverage for such month. 

‘‘(b) SHAREDRESPONSIBILITYPAYMENT.— 

‘‘(1) INGENERAL.—øReplaced by section 10106(b)¿ If a tax- 

payer who is an applicable individual, or an applicable indi- 

vidual for whom the taxpayer is liable under paragraph (3), 

fails to meet the requirement of subsection (a) for 1 or more 

months, then, except as provided in subsection (e), there is 

hereby imposed on the taxpayer a penalty with respect to such 

failures in the amount determined under subsection (c). 

‘‘(2) INCLUSIONWITHRETURN.—Any penalty imposed by 

this section with respect to any month shall be included with 

a taxpayer’s return under chapter 1 for the taxable year which 

includes such month. 

‘‘(3) PAYMENTOFPENALTY.—If an individual with respect 

to whom a penalty is imposed by this section for any month— 

‘‘(A) is a dependent (as defined in section 152) of an- 

other taxpayer for the other taxpayer’s taxable year in- 

cluding such month, such other taxpayer shall be liable for 

such penalty, or 

‘‘(B) files a joint return for the taxable year including 

such month, such individual and the spouse of such indi- 

vidual shall be jointly liable for such penalty. 

‘‘(c) AMOUNTOFPENALTY.—øParagraphs (1) and (2) were re- 

vised in their entirety by section 10106(b)(2)¿ 

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146 

Sec. 1501 PPACA (Consolidated) 

‘‘(1) INGENERAL.—The amount of the penalty imposed by 

this section on any taxpayer for any taxable year with respect 

to failures described in subsection (b)(1) shall be equal to the 

lesser of— 

‘‘(A) the sum of the monthly penalty amounts deter- 

mined under paragraph (2) for months in the taxable year 

during which 1 or more such failures occurred, or 

‘‘(B) an amount equal to the national average premium 

for qualified health plans which have a bronze level of cov- 

erage, provide coverage for the applicable family size in- 

volved, and are offered through Exchanges for plan years 

beginning in the calendar year with or within which the 

taxable year ends. 

‘‘(2) MONTHLYPENALTYAMOUNTS.—For purposes of para- 

graph (1)(A), the monthly penalty amount with respect to any 

taxpayer for any month during which any failure described in 

subsection (b)(1) occurred is an amount equal to 1⁄12 of the 

greater of the following amounts: 

‘‘(A) FLATDOLLARAMOUNT.—An amount equal to the 

lesser of— 

‘‘(i) the sum of the applicable dollar amounts for 

all individuals with respect to whom such failure oc- 

curred during such month, or 

‘‘(ii) 300 percent of the applicable dollar amount 

(determined without regard to paragraph (3)(C)) for 

the calendar year with or within which the taxable 

year ends. 

‘‘(B) PERCENTAGEOFINCOME.—øAs revised by section 

1002(a)(1) of HCERA¿ An amount equal to the following 

percentage of the excess of the taxpayer’s household in- 

come for the taxable year over the amount of gross income 

specified in section 6012(a)(1) with respect to the taxpayer 

for the taxable year: 

‘‘(i) 1.0 percent for taxable years beginning in 

2014. 

‘‘(ii) 2.0 percent for taxable years beginning in 

2015. 

‘‘(iii) 2.5 percent for taxable years beginning after 

2015. 

‘‘(3) APPLICABLEDOLLARAMOUNT.—øAs revised by section 

10106(b)(3) and by section 1002(a)(2) of HCERA¿ For purposes 

of paragraph (1)— 

‘‘(A) IN GENERAL.—Except as provided in subpara- 

graphs (B) and (C), the applicable dollar amount is $695. 

‘‘(B) PHASEIN.—The applicable dollar amount is $95 

for 2014 and $325 for 2015. 

‘‘(C) SPECIALRULEFORINDIVIDUALSUNDERAGE18.— 

If an applicable individual has not attained the age of 18 

as of the beginning of a month, the applicable dollar 

amount with respect to such individual for the month shall 

be equal to one-half of the applicable dollar amount for the 

calendar year in which the month occurs. 

‘‘(D) INDEXINGOF AMOUNT.—In the case of any cal- 

endar year beginning after 2016, the applicable dollar 

146 

Sec. 1501 PPACA (Consolidated) 

‘‘(1) INGENERAL.—The amount of the penalty imposed by 

this section on any taxpayer for any taxable year with respect 

to failures described in subsection (b)(1) shall be equal to the 

lesser of— 

‘‘(A) the sum of the monthly penalty amounts deter- 

mined under paragraph (2) for months in the taxable year 

during which 1 or more such failures occurred, or 

‘‘(B) an amount equal to the national average premium 

for qualified health plans which have a bronze level of cov- 

erage, provide coverage for the applicable family size in- 

volved, and are offered through Exchanges for plan years 

beginning in the calendar year with or within which the 

taxable year ends. 

‘‘(2) MONTHLYPENALTYAMOUNTS.—For purposes of para- 

graph (1)(A), the monthly penalty amount with respect to any 

taxpayer for any month during which any failure described in 

subsection (b)(1) occurred is an amount equal to 1⁄12 of the 

greater of the following amounts: 

‘‘(A) FLATDOLLARAMOUNT.—An amount equal to the 

lesser of— 

‘‘(i) the sum of the applicable dollar amounts for 

all individuals with respect to whom such failure oc- 

curred during such month, or 

‘‘(ii) 300 percent of the applicable dollar amount 

(determined without regard to paragraph (3)(C)) for 

the calendar year with or within which the taxable 

year ends. 

‘‘(B) PERCENTAGEOFINCOME.—øAs revised by section 

1002(a)(1) of HCERA¿ An amount equal to the following 

percentage of the excess of the taxpayer’s household in- 

come for the taxable year over the amount of gross income 

specified in section 6012(a)(1) with respect to the taxpayer 

for the taxable year: 

‘‘(i) 1.0 percent for taxable years beginning in 

2014. 

‘‘(ii) 2.0 percent for taxable years beginning in 

2015. 

‘‘(iii) 2.5 percent for taxable years beginning after 

2015. 

‘‘(3) APPLICABLEDOLLARAMOUNT.—øAs revised by section 

10106(b)(3) and by section 1002(a)(2) of HCERA¿ For purposes 

of paragraph (1)— 

‘‘(A) IN GENERAL.—Except as provided in subpara- 

graphs (B) and (C), the applicable dollar amount is $695. 

‘‘(B) PHASEIN.—The applicable dollar amount is $95 

for 2014 and $325 for 2015. 

‘‘(C) SPECIALRULEFORINDIVIDUALSUNDERAGE18.— 

If an applicable individual has not attained the age of 18 

as of the beginning of a month, the applicable dollar 

amount with respect to such individual for the month shall 

be equal to one-half of the applicable dollar amount for the 

calendar year in which the month occurs. 

‘‘(D) INDEXINGOF AMOUNT.—In the case of any cal- 

endar year beginning after 2016, the applicable dollar 

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147 Sec. 1501 

PPACA (Consolidated) 

amount shall be equal to $695, increased by an amount 

equal to— 

‘‘(i) $695, multiplied by 

‘‘(ii) the cost-of-living adjustment determined 

under section 1(f)(3) for the calendar year, determined 

by substituting ‘calendar year 2015’ for ‘calendar year 

1992’ in subparagraph (B) thereof. 

If the amount of any increase under clause (i) is not a mul- 

tiple of $50, such increase shall be rounded to the next 

lowest multiple of $50. 

‘‘(4) TERMSRELATINGTOINCOMEANDFAMILIES.—For pur- 

poses of this section— 

‘‘(A) FAMILYSIZE.—The family size involved with re- 

spect to any taxpayer shall be equal to the number of indi- 

viduals for whom the taxpayer is allowed a deduction 

under section 151 (relating to allowance of deduction for 

personal exemptions) for the taxable year. 

‘‘(B) HOUSEHOLD INCOME.—The term ‘household in- 

come’ means, with respect to any taxpayer for any taxable 

year, an amount equal to the sum of—øshown to reflect 

probable amendment made by section 1004(a)(1)(C) of 

HCERA¿ 

‘‘(i) the modified adjusted gross income of the tax- 

payer, plus 

‘‘(ii) the aggregate modified adjusted gross in- 

comes of all other individuals who— 

‘‘(I) were taken into account in determining 

the taxpayer’s family size under paragraph (1), 

and 

‘‘(II) were required to file a return of tax im- 

posed by section 1 for the taxable year. 

‘‘(C) MODIFIED ADJUSTED GROSS INCOME.—øReplaced 

by section 1004(a)(2)(B)¿ The term ‘modified adjusted gross 

income’ means adjusted gross income increased by— 

‘‘(i) any amount excluded from gross income under 

section 911, and 

‘‘(ii) any amount of interest received or accrued by 

the taxpayer during the taxable year which is exempt 

from tax. 

‘‘(d) APPLICABLEINDIVIDUAL.—For purposes of this section— 

‘‘(1) INGENERAL.—The term ‘applicable individual’ means, 

with respect to any month, an individual other than an indi- 

vidual described in paragraph (2), (3), or (4). 

‘‘(2) RELIGIOUSEXEMPTIONS.— 

‘‘(A) RELIGIOUS CONSCIENCE EXEMPTION.—øReplaced 

by section 10106(c)¿ Such term shall not include any indi- 

vidual for any month if such individual has in effect an ex- 

emption under section 1311(d)(4)(H) of the Patient Protec- 

tion and Affordable Care Act which certifies that such in- 

dividual is— 

‘‘(i) a member of a recognized religious sect or divi- 

sion thereof which is described in section 1402(g)(1), 

and