The Health Care Bill Plot Thickens: Showing Proof of Insurance on Tax Returns?

Posted in Health Insurance

January 13th, 2010

While nothing is final as of yet, word is circulating that the final health care bill may require that all Americans not only have health insurance, but prove it – on their tax returns. And if you don’t prove it on your already-complicated tax form, you may just have to face a fine.

At least, that’s what rumors are saying.

The IRS Is On the Hook

Of course, the bill has not passed yet, but some believe that since it will likely be a part of the final bill, there is more work to worry about for IRS officials. It would require the IRS to complete the incredible task of enforcing this new health insurance mandate when it typically doesn’t audit unless red flags are raised.

Other IRS Responsibilities

In addition being responsible for making sure that every taxpayer shows proof of health insurance, the IRS will also be responsible for dishing out taxpayer dollars to low-income Americans that need help paying for health care.

It will also need to administer tax credits to small businesses so that they can offer health insurance to their workers.

What About Us?

Unfortunately, there are not many details circulating as of yet that say exactly what would be expected of taxpayers if this element is passed in the bill. Obviously, we must assume that health insurance will be mandatory as mentioned before. But there’s no word on what we will need to prove that we’ve obtained it, how those needing subsidies will get them, etc.

We will just have to wait for word on what will be expected of us – and hope that we can deliver when the time comes to avoid fines.

What do you think of the proposals?