“As currently devised, the individual mandate, which would be phased in between 2014 and 2016, would impose a tax penalty on people who fail to acquire health insurance. Under the Obama proposal, it would be 2.5 percent of income or $695 (whichever is higher), with exemptions for people who either fall under the tax-filing threshold or who, if forced to purchase health insurance, would end up spending more than 8 percent of their annual income. The majority of those subject to the mandate would receive a government subsidy whose precise size is being worked out in House-Senate negotiations. The answer, then, to the question What happens to people who don’t buy health insurance? is simple: They have to pay a $695 fine. But as Jost points out, that begs the question, What happens to people who don’t pay the fine? Uh … nothing.” (03/11/10)