Four million people who are expected to be in violation of Obamacare's mandate to obtain health insurance are projected to pay $4.2 billion in tax penalties in 2016, according to new government estimates.
That penalty total is $3 billion less than an earlier estimate, according to a report issued by the Congressional Budget Office.
The steep drop is due to the fact that 2 million fewer people are now expected to pay the penalty, largely because more people are expected to receive exemptions.
The CBO and the Joint Committee on Taxation also now estimate that the government will collect an estimated average of $5 billion per year from 2017 through 2024 from uninsured Americans in Obamacare penalties. From 2015 to 2024, the CBO report said, a total of $46 billion in Obamacare penalty payments are projected to be collected.