Are the fines big enough?

The House bill stipulates up to a 2.5% of adjusted gross income tax penalty for individuals who choose to not purchase mandated insurance. The Senate package also contains fines, though they are far less stiff. The question is, will these penalties be sufficient enough to motivate big numbers of uninsured Americans toward purchasing coverage?

Here's the big problem. In the Senate bill, the fines are $200 in 2014, $400 in 2015 and $750 by 2017. When you compare these fines with the cost of coverage (i.e., the monthly premiums), it's almost a no-brainer: why buy the insurance? This is, in part, the logic behind the steeper fines in the House bill.

This will be one of the key issues debated in the coming days... expect fireworks.