Health Care Reform Assumes Millions Would Pay Fine Rather Than Get Coverage
by Judson Berger - FOXNews.com - November 04, 2009

The nonpartisan Congressional Budget Office estimated in its study last week that the House health care bill would bring in $167 billion over 10 years in penalties from those who don't get coverage. A significant part of the plan to expand coverage relies financially on fines from the uninsured.

The health care reform bill awaiting debate in the House assumes millions of workers and employers would rather pay $167 billion in fines than purchase or provide adequate coverage.

The nonpartisan Congressional Budget Office estimated in its study last week that the House bill would bring in $167 billion over 10 years -- $33 billion from fines paid by individuals who decline to buy insurance, and the rest from employers who don't offer insurance to workers or contribute enough toward premiums.

Ernest Istook, a former Republican congressman from Oklahoma who is now a fellow at the conservative Heritage Foundation, calculated that anywhere between 8 million and 14 million people would end up paying the fines.

This raises a few problems, he said. First, if those millions somehow get covered and don't pay the fine, then the health program is faced with a budget hole.

Second, he said, it speaks to a flaw with the insurance packages that are being offered. "If you say people would rather pay $167 billion in penalties rather than buy insurance under your new plan, what's wrong with your new plan?" he asked.

The answer, Istook said: "It's expensive."

"There's just going to be some people who choose rather to pay (the fine) than to pay for health care," said Stephanie Lundberg, spokeswoman for House Majority Leader Steny Hoyer, D-Md. "There's going to be some people that just philosophically don't want to buy health care."