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IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family
CNS News ^ | January 31, 2013 | Matt Cover

Posted on 01/31/2013 2:43:47 PM PST by rhema

In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year.

Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS.

The IRS's assumption that the cheapest plan for family of five will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.

“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the regulation says.

Bronze will be the lowest tier health-insurance plan available under Obamacare--after Silver, Gold, and Platinum. Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016.

In the new final rules published Wednesday, IRS set in law the rules for implementing the penalty Americans must pay if they fail to obey Obamacare's mandate to buy insurance.

To help illustrate these rules, the IRS presented examples of different situations families might find themselves in.

In the examples, the IRS assumes that families of five who are uninsured would need to pay an average of $20,000 per year to purchase a Bronze plan in 2016.

Using the conditions laid out in the regulations, the IRS calculates that a family earning $120,000 per year that did not buy insurance would need to pay a "penalty" (a word the IRS still uses despite the Supreme Court ruling that it is in fact a "tax") of $2,400 in 2016.

For those wondering how clear the IRS's clarifications of this new "penalty" rule are, here is one of the actual examples the IRS gives:

“Example 3. Family without minimum essential coverage.

"(i) In 2016, Taxpayers H and J are married and file a joint return. H and J have three children: K, age 21, L, age 15, and M, age 10. No member of the family has minimum essential coverage for any month in 2016. H and J’s household income is $120,000. H and J’s applicable filing threshold is $24,000. The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000.

"(ii) For each month in 2016, under paragraphs (b)(2)(ii) and (b)(2)(iii) of this section, the applicable dollar amount is $2,780 (($695 x 3 adults) + (($695/2) x 2 children)). Under paragraph (b)(2)(i) of this section, the flat dollar amount is $2,085 (the lesser of $2,780 and $2,085 ($695 x 3)). Under paragraph (b)(3) of this section, the excess income amount is $2,400 (($120,000 - $24,000) x 0.025). Therefore, under paragraph (b)(1) of this section, the monthly penalty amount is $200 (the greater of $173.75 ($2,085/12) or $200 ($2,400/12)).

"(iii) The sum of the monthly penalty amounts is $2,400 ($200 x 12). The sum of the monthly national average bronze plan premiums is $20,000 ($20,000/12 x 12). Therefore, under paragraph (a) of this section, the shared responsibility payment imposed on H and J for 2016 is $2,400 (the lesser of $2,400 or $20,000).”


TOPICS: Breaking News; Business/Economy; Constitution/Conservatism; Crime/Corruption; Government; Politics/Elections
KEYWORDS: 0care; bhofascism; deathcare; democrathealthcare; democrats; fubo; fudemocrats; fuobamavoters; govtabuse; healthcare; incometax; irs; irsobamacare; liberals; nothealthcare; obama; obamacare; obamacarefiasco; obamacarepenalty; obamarecession; obamataxhikes; pelosi; progressive; romney; romneycare; socialisthealthcare; tyranny; zerocare
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1 posted on 01/31/2013 2:43:52 PM PST by rhema
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To: rhema

This was the plan all along, to push everyone into single payer and put the insurance companies out of business.


2 posted on 01/31/2013 2:46:54 PM PST by 2ndDivisionVet (I'll raise $2million for Sarah Palin's presidential run. What'll you do?)
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Comment #3 Removed by Moderator

To: rhema; Revolting cat!

Women and chil’ren hurt most.


4 posted on 01/31/2013 2:48:10 PM PST by a fool in paradise (America 2013 - STUCK ON STUPID)
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To: 2ndDivisionVet

We gotta pass the bill so we can see what’s in it!...............I don’t like what I see............


5 posted on 01/31/2013 2:48:44 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: rhema

The cheapest plan is about 80% if my income.


6 posted on 01/31/2013 2:49:09 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: rhema

My personal health insurance alone right now is half that amount and I am not classified as a risk for anything as of the moment. I hope the 47% of the US get their just desserts.


7 posted on 01/31/2013 2:50:02 PM PST by vetvetdoug
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To: rhema

So, the government will give a $20,000 health insurance policy to anyone who quits working?

At last the utopia of the peasantry has come to America!


8 posted on 01/31/2013 2:51:48 PM PST by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat Party!)
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To: rhema
Would have been nice if they had announced a $20,000 tax penalty fine tax before the law was passed. I guess this is what Pelosi was talking about having to pass the bill (like a record breaking kidney stone) before you can find out what is in it.
9 posted on 01/31/2013 2:52:15 PM PST by KarlInOhio (Choose one: the yellow and black flag of the Tea Party or the white flag of the Republican Party.)
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To: Jonty30

With no roof over your head and no food to eat you’re going to need health care more than ever, comrade. /s


10 posted on 01/31/2013 2:52:34 PM PST by TigersEye (The irresponsible should not be leading the responsible.)
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To: rhema

Since Median Household income is $49K, the IRS assumes that family will spend 40% of its pre-tax income on Healthcare.

Nice.


11 posted on 01/31/2013 2:53:30 PM PST by Uncle Miltie (Of the government, by the government, and for the government.)
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To: rhema

I am sure this has been answered a zillion times ... So which fed govt entity gets the money from these lousy fines?

I know it all comes into treasury etc but what is their pack of lies for where the money supposedly goes? If it goes anywhere it ought to go to healthcare insurance companies so they could lower premiums (since the fine is suppoedly because people cant afford the premiums). The govt should not get a penny of it


12 posted on 01/31/2013 2:53:37 PM PST by plain talk
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To: vetvetdoug

they will get their dessert along with dinner, paid for by US. illegals will get their free healthcare also.


13 posted on 01/31/2013 2:53:43 PM PST by machogirl (First they came for my tagline)
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To: rhema

Do you see what page (in the attachment) the sections cited are on?


14 posted on 01/31/2013 2:55:23 PM PST by Baynative (I'm reading a book about anti-gravity. I can't put it down.)
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To: rhema

This is a can of worms.

Imagine any hospital turning away an emergency patient, whether that patient has insurance or not. Ambulance-chasing lawyers are will be on standby.

The repercussions of Obamacare will not be known for a long while. The unintended consequences will create further disasters and policy crises.

Yeah, Pelosi, someone should have read the damn thing!


15 posted on 01/31/2013 2:56:34 PM PST by TomGuy
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To: rhema

If this before or after busloads of illegals arrive to get their free stuff under 0bama’s new ‘immigration’ policy?


16 posted on 01/31/2013 2:56:51 PM PST by Obama_Is_Sabotaging_America (IMPEACH OBAMA)
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To: 2ndDivisionVet
"This was the plan all along, to push everyone into single payer and put the insurance companies out of business."

Bingo. You are absolutely correct. These rates and declining doctor participation rates will destroy health care for the masses and they will demand that the government DO SOMETHING. Obama and his minions will then establish National Health Care after their dream of the British system. The media will report the wondrous gift from Dear Leader and suppress any bad news.

17 posted on 01/31/2013 2:57:15 PM PST by Truth29
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To: rhema

Keep working those 29 hour a week jobs, folks.


18 posted on 01/31/2013 2:57:51 PM PST by Vince Ferrer
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To: rhema

Only the top 1%, or maybe 10%, and those at the very bottom will be able to afford health insurance.

Thank God for Walmart and $4 prescriptions, at least until we need to be hospitalized some day.


19 posted on 01/31/2013 2:57:59 PM PST by steve86 (Acerbic by Nature, not Nurture™)
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To: rhema

Now we understand why they need 15,000 additional IRS agents to administer this convoluted mess.


20 posted on 01/31/2013 2:59:12 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: rhema
Mine eyes have seen the glory of the coming of the Lord

He is trampling out the vintage where the grapes of wrath are stored....

Someday it will really suck to be Obama

21 posted on 01/31/2013 2:59:21 PM PST by stboz
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To: 2ndDivisionVet

Correctamundo! And the stupid short-sighted insurance companies fell for it.


22 posted on 01/31/2013 2:59:21 PM PST by Hoodat ("As for God, His way is perfect" - Psalm 18:30)
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To: Truth29
That may have been their plan but they couldn't keep it all secret long enough. We do have a Republican majority in the House and if they know what's good for them they will STOP any changes the Democrats demand ~ including single-payer.

Remember, one of the most replaceable things in America is a member of the House. They come up for election every 2 years ~

23 posted on 01/31/2013 3:00:10 PM PST by muawiyah
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To: Uncle Miltie
Since Median Household income is $49K, the IRS assumes that family will spend 40% of its pre-tax income on Healthcare.

Supposedly, those 125% new home loans are available still. So a family could purchase a new home and use that extra 25% to pay for their Obamacare premiums.


24 posted on 01/31/2013 3:00:20 PM PST by TomGuy
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To: rhema
What is this 4-tier nonsense? I thought Dems were against this "class" stuff.

Is Platinum for elected officials and the rich (which cover everything, including out-of-pocket expenses) and Bronze for us low-life peons (which will be nothing more than catastrophic coverage with a huge deductible and never really cover much of anything)?

What if you make less than $20K a year, and thus, cannot even afford to pay for Zerocare at all (if you must eat and have a roof over your head and gas for your car to get to work)? Can a doctor legally accept cash for service anymore, or must everyone have some kind of coverage, even if it's "obamacare"?

25 posted on 01/31/2013 3:00:57 PM PST by jeffc (The U.S. media are our enemy)
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To: rhema

What will the cost per family be once you factor in all of those illegal aliens that will soon be granted amnesty?


26 posted on 01/31/2013 3:02:04 PM PST by GreenHornet
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To: plain talk
The 'fines' haven't been run through Congress yet. That will need to be done again and again since they are taxes and the Executive is not authorized to change taxes unilaterally.
27 posted on 01/31/2013 3:02:50 PM PST by muawiyah
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To: rhema

bump


28 posted on 01/31/2013 3:02:50 PM PST by lowbridge (Joe Biden: "Look, the Taliban per se is not our penemy.")
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To: rhema

Thank you Chief Justice Roberts, you no good two faced spineless slimy SOB!!!!!!!!!!!


29 posted on 01/31/2013 3:03:02 PM PST by henkster ("The people who count the votes decide everything." -Joseph Stalin)
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To: TomGuy
The unintended consequences will create further disasters and policy crises.

FIFY

30 posted on 01/31/2013 3:03:15 PM PST by Drill Thrawl (The Progs are pushing for war. Be ready.)
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To: rhema

“Bronze Plan” Who elected him?


31 posted on 01/31/2013 3:03:19 PM PST by Williams (No Obama)
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To: Baynative

?


32 posted on 01/31/2013 3:04:28 PM PST by JDoutrider
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To: rhema
Therefore, under paragraph (a) of this section, the shared responsibility payment imposed on H and J for 2016 is $2,400 (the lesser of $2,400 or $20,000).

That sounds like something straight out of the Soviet Union.

33 posted on 01/31/2013 3:04:39 PM PST by crusty old prospector
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To: jeffc
What if you make less than $20K a year

Many states will put you into Medicaid at a little lower annual income than that (depending on family size). But in many areas you will not be able to find a primary provider who is accepting new Medicaid patients, and the wait for specialists could be very long.

34 posted on 01/31/2013 3:05:18 PM PST by steve86 (Acerbic by Nature, not Nurture™)
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IRS: The Cheapest Obamacare (STEALTH TAX) Plan Will Be $20,000 Per Family Of Five - Obama And Democrats Are In Your Wallet!


35 posted on 01/31/2013 3:05:33 PM PST by devolve ( ---- ---- ---- ---- ---- ---- ---- ---- ---Barak Hasan Obama II--- ---- ---- ---- ---- ----)
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To: 2ndDivisionVet

By 2025 third world health care, will feel like home for the majority of Americans. We’ll be like Africa, China, India, Mexico and all other utopias citizens of the world immigrated from. No more “racist, greedy America.”

Globalism promises a rush to the bottom, so the serfs can compete for a piece of the global pie...or a cup of rice and a 300 sq foot flat.


36 posted on 01/31/2013 3:06:26 PM PST by SaraJohnson
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To: crusty old prospector

Well it does provide 15,000 additional “good” jobs, LOL.


37 posted on 01/31/2013 3:06:53 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: rhema

Let me guess - we all get the Bronze medal and the assorted deadbeats that make up the 47% will get Platinum service, all in the name of social justice.


38 posted on 01/31/2013 3:07:13 PM PST by crusty old prospector
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To: rhema

Don’t worry guys; Boner and McConnell are all over this!

Even now McConnell is drafting a Strongly Worded Letter to the President. I feel better already!


39 posted on 01/31/2013 3:08:01 PM PST by Artcore
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To: rhema

Wow! The revolution might start much sooner than I thought.


40 posted on 01/31/2013 3:08:27 PM PST by Envisioning (Call me a racist........, one more time..........)
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To: rhema
Before 0bamaCare was even law I was sure it would destroy the health care system. The more I hear about what's in it I am becoming convinced that the destruction is going to be quite rapid.

0bamaCare will seize up the health care system like a handful of gravel poured into the carburetor of a running engine.

41 posted on 01/31/2013 3:09:28 PM PST by TigersEye (The irresponsible should not be leading the responsible.)
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To: SaraJohnson

The best and brightest in US health care will probably migrate to the Caribbean where wealthy patients can access fairly easily.


42 posted on 01/31/2013 3:09:40 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: rhema

You could always go on strike. Don’t work, don’t pay. See who loses nerve first. I bet the govt will, given enough Americans with backbone.


43 posted on 01/31/2013 3:10:55 PM PST by HomeAtLast ( You're either with the Tea Party, or you're with the EBT Party.)
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To: Artcore

Hey, we all just stop working and we get free health care, probably free cars, free education, free food, free housing and free Spanish lessons.

The collapse of America as I see it.


44 posted on 01/31/2013 3:12:19 PM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.)
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To: rhema; Grampa Dave; tubebender; Ernest_at_the_Beach; NormsRevenge; Liz; dixiechick2000; Jayster; ...
Ok, so then what are the benefits for that "Bronze" plan? What are the deductibles, copays and co-insurance percentages or out of pocket annual maximums for each family member or the family as a whole?

In other words, what do they get for that "penalty" premium and how much of their butts are left hanging out, exposed to the personal out of pocket at time of service? A "Bronze" plan must, by any common denomiator, provide less coverage than the other three metalic grades of plans!

What's left uncovered in spite of a $20,000.00 annual "penalty"/tax??? BOHICA!!!

Oh! And what's the annual salary of that IRS agent who checks your tax returns to see if you either paid enough for private insurance or paid the right "penalty" instead? I'm sure it's more than 5 times the minimum "penalty" rate!!!

45 posted on 01/31/2013 3:12:51 PM PST by SierraWasp (Mark Twain said: "It's easier to fool someone than to convince them they've been fooled!!!)
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To: steve86

Also, regarding drawbacks of being a Medicaid patient, I have seen first-hand (a close relative), who was discharged from the hospital at the drop of a hat (much too soon), even when involved in a high-risk pregnancy, considerable pain, low blood pressure, swollen extremities, etc. The medical staff, although very competent and caring, said they had no choice due to new rules regarding Medicaid patients.


46 posted on 01/31/2013 3:14:09 PM PST by steve86 (Acerbic by Nature, not Nurture™)
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To: Artcore

Dear King Obama,

Darn. May I have permission to ask you a question about your healthcare bill?

Very truly your stooge,

Mitzi McConnell


47 posted on 01/31/2013 3:14:52 PM PST by RatRipper (Self-centeredness, greed, envy, deceit and lawless corruption has killed this once great nation.)
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To: rhema

300Mil Americans / 4 * 20,000 = $1.5Trillion

Current spending is $2.7Trillion

Medicare is about $600B

$1.5 Trillion + 600B = $2.1Trillion

So there’s roughly $600B in fees and co pays to get to break even.

so are we really spending an aggregate of approximately $35k - $40k per family of 4 NOW??

Where is all this money going?
(just a rhetorical question)


48 posted on 01/31/2013 3:24:00 PM PST by RFEngineer
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I know what it’s like to pay that kind of money for health insurance. The Country will go into shock if that cost hits home for most every family.


49 posted on 01/31/2013 3:25:40 PM PST by Gene Eric
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To: RatRipper

You have brilliantly proved that great humor is grounded in the truth! :-D


50 posted on 01/31/2013 3:26:12 PM PST by Artcore
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