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False Facebook Post on Health Care Reform

November 17, 2013

A false Facebook post is making the rounds claiming that if you don’t pay the penalty for not buying health insurance, the IRS can file a lien against your home.

The health care reform law requires individuals who don’t meet one of the law’s exemptions to buy an insurance plan that meets minimum requirements or face a penalty.The law set up online state insurance exchanges to simplify cost comparisons among plans and to make purchasing a plan easy. Open enrollment for these insurance plans on the online exchanges began Oct. 1 and runs through March 2014.

For those who choose to have no insurance at all  by the open-enrollment deadline, they will be penalized $95 or 1 percent of their income (whichever is greater). That penalty will go up to $695 or 2.5 percent of income in 2016.

However, it is not true that the IRS can file a lien against your home for failing to pay the penalty.

Though the IRS does have authority to garnish wages and file liens to collect unpaid taxes, the Affordable Care Act explicitly prohibits it from using such measures to collect health-insurance penalties, according to Kaiser Health News, an independent nonprofit news organization dedicated to covering U.S. health policy.
Instead, the IRS will withhold the penalty from your tax return, Kaiser Health News reports.

ACA Exemptions

Online State Insurance Exchanges

Options for REALTORS®

Kaiser Health News Article