Penalty for not having insurance is too low [View All]

[YewNork]

Why is the fine in the for not having health insurance so low?

The fine in the Senate bill, and in what will be the reconciled House bill, will be $695/year or 2.5% of income, whichever is higher.

My private insurance costs me $290/month or $3480/year.

Based on a penalty of $695 or 2.5% of income (whichever is higher), it means that unless my income exceeded $139,200, it would be cheaper
for me to just pay the penalty, and then buy insurance when I get sick - because they wouldn't be able to deny me coverage.

Not that I would do it. I value my insurance, but don't you think many people would?

You'd think the penalty would be higher than what health insurance would cost, so that people would want to buy insurance instead.