U.S. Senate leaders can’t be serious about proposed penalties in their health care reform legislation, imposed against those who don’t buy insurance. The fine is so low that if this provision survives, it would almost guarantee the death of the private health insurance market.

Under the Senate bill, individuals would be required to buy health insurance. But the penalty for opting out, so to speak, would be ridiculously low–starting at $95 in 2014 and rising to a still paltry $750 in 2016, with a maximum of $2,250 for a family.

This is a fatal flaw. If you ban insurers from rejecting those with preexisting conditions, yet set a ridiculously low penalty for those who refuse to buy coverage when they’re healthy, many will avoid getting insurance until they become seriously ill.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.


  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Dig Deeper



Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.