U.S. Senate leaders can't be serious about proposed penalties intheir health care reform legislation, imposed against those whodon't buy insurance. The fine is so low that if this provisionsurvives, it would almost guarantee the death of the private healthinsurance market.
Under the Senate bill, individuals would be required tobuy health insurance. But the penalty for opting out, so to speak,would be ridiculously low–starting at $95 in 2014 and rising to astill paltry $750 in 2016, with a maximum of $2,250 for afamily.
This is a fatal flaw. If you ban insurers from rejecting thosewith preexisting conditions, yet set a ridiculously low penalty forthose who refuse to buy coverage when they're healthy, many willavoid getting insurance until they become seriously ill.
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