"Compromise Plan" still forces Individuals to buy Coverage

The Health Care plan just released by Senate Majority Leader Harry Reid is being billed by the mainstream media as a big compromise package between liberals and moderates. Libertarians are opposed to any form of government involvement in health care. However, one measure that libertarians find particularly offensive is the Individual Mandate. According to CNN, the Reid plan includes mandated coverage with harsh penalties for non-compliance.

From CNN "House, Senate versions grow farther apart":

Under both plans, individuals would be required to purchase coverage, but the House bill includes more stringent penalties for most of those who fail to comply. The Senate plan would require individuals to buy health insurance, with a fine for noncompliance of $95 in the first year that would escalate to $750 by 2016. Parents would be responsible for providing coverage for children up to age 18.

The House bill would impose a fine of up to 2.5 percent of an individual's income.

Still not clear on possible Jail time?

Full details of the Reid plan have still not been released. It is unclear at this point if criminal penalties for failure to purchase insurance includes jail time in the Senate version as are included in the House version.

But notably, Republican Rep. David Camp of Michigan, in response to his query about the mandate, received a letter from the IRS dated Nov. 5, confirming that a "fine of up to $250,000 and/or imprisonment for up to 5 years," could be imposed on any American willfully disregarding the IRS requirement of tax liability.

Liberal media have since been writing this off as unnecessary "Republican fretting."

The LA Times had a lengthy Q&A "What the Health Insurance mandate means," Dec. 6. Among the questions:

Will I be forced to buy health insurance? Will I go to jail if I don't?

The short answer is yes, you probably would be forced to buy insurance, but no, you aren't likely to be locked up if you don't, unless you're a big-time tax cheat.

National Public Radio echoed that sentiment stating that only serious offenders would be jailed. From NPR, Nov. 18:

imprisonment of tax evaders is usually reserved for the most outrageous cases. The letter to Camp notes that the Internal Revenue Service usually pursues unpaid taxes through the civil process -- meaning no jail time. In 2008, fewer than 500 people were incarcerated because of the penalties the Republicans are fretting about.