New Jersey Reintroduces Obamacare Individual mandate Tax

via NJ.com:

Gov. Phil Murphy on Wednesday signed a law preserving a critical yet controversial part of the Affordable Care Act that President Donald Trump‘s administration repealed last year.

One of the laws creates a statewide individual mandate, which will require all New Jerseyans who don’t have health coverage through a government program like Medicare or their jobs to buy a policy, or pay a fee at tax time.

The landmark federal health care law, better known as Obamacare, imposed the mandate to ensure younger and healthier people who might otherwise forgo insurance will buy-in and share costs.

But the tax package approved by the Republican-led Congress and signed into law by Trump will end the mandate in 2019. The requirement was one of the more distasteful parts of the law for lawmakers and the public who believe it allowed government to intrude into people’s lives.

State Sen. Joseph Vitale, D-Middlesex, one of the prime sponsors of the law, said keeping the mandate “was needed to maintain a foundation for the insurance market and to allow the success of the ACA to continue.”

Trump’s actions “will usher in an era of higher health insurance costs for everyone and lower health coverage rates. We want to protect New Jersey from the negative impact,” said state Sen. Troy Singleton, D-Burlington, also a sponsor.

About 800,000 people obtained insurance coverage under the law — 500,000 through Medicaid and about 300,000 through a commercial plan.

The law (S1877) gives the state the authority to impose the individual mandate and collect a fee from people who do not buy insurance.

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