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).”
I’m shocked!
Thank you again Obama voters. The greatest health care system in the world is ruined. Way to go.
People will pay the tax penalty. $2,400 vs $20,000 - do the math.
There’s no incentive to buy private health insurance.
Thank you!!
I know for Medicare, under Affordable Health Care Act, hospitals will be penalized 1% of their Medicare payments for Inpatient Readmissions. In total, 2,211 hospitals will lose some part of their inpatient Medicare payments in FY 2013.
THIS IS WHY THEY WANT OUR GUNS.
“Everyone who voted for this crazy man deserves to be vilified.”
Pffft. I don’t even talk to my liberal brother. Plus, I fired every obama ass-kisser in our company..right after the election even! Left one alone just in case we get sued and she is our “evidence” we ain’t a bunch of right-wingers. What have you done lately?
Illegals won’t pay a cent for it either!
Thanks Judge Roberts! Actually no thanks! This is all your fault for changing your vote!
Nope. Exempt along with Congress, some Federal employees, prisoners, Native Americans, supposedly Armed Forces (and Veterans)...
“The Rules are for Thee, not for ME.”
“Let them eat cake.”
How many still think Roberts was a genius for his vote?
Once the spillways are open, no looking back.
*
Medicaid Doctors and urban clinics.
There’s no incentive to buy private health insurance.
Especially when, should you fall ill or suffer an accident, you can immediately purchase the insurance to cover your treatment -- there being no exception for "prior condition".
Which, of course, is why it costs $20,000 in the first place.
OBAMACARE: Dumber Than Ethanol.
The people who will be left destitute are the law-abiding normal Americans with a work ethic and sense of personal responsibility, the subset of citizens that Obama hates above all: those who embrace and honor the unalienable rights given by the Creator and who viscerally reject the destructive, enslaving model of the collective.
Bow down to worship Pharaobama - making FedGov Baal supreme lord and source of sustenance - and live (at least for as long as Pharaoh decrees). The desire for independence from the beast system is a crime that is deserving of death.
Obamasnare is merely the last-stage or final act in the grand scheme of destroying America. We are all runners now (Logan's Run reference).
If America recognized that the image staring back in the mirror is ancient Israel, she'd perhaps understand what is happening in these days and why. Then again if she knew, she wouldn't be lost and bending over for Baal.
Heck, he and the other Communists/Socialists/Marxists/Elites/Beltway Boys have worked this country over enough they will have enough money to leave the cesspool they are trying to create. They won’t hang around. Off to their wealthy offshore estates along with most of wealthy donors and Hollywood lefties.
What Lenin/Stalin couldn’t do to America in 70 years, Barry will have done in 6 or certainly by 2016. Nothing will be left but crumbs as those here illegally scurry away with them.
Wouldn’t it be great if they discovered an amendment in OC that stipulated every elected official from dog-catcher to Great Leader had to subscribe to the plan, just like the peasants?
This is where ther 20K comes from- but the actual premium is $2600 if you read the whole paragraph.
.............................
Example 2. Family. (i) In 2016 Taxpayers M and N are married and file a joint
return. M and N have two children, P and Q. M, N, P, and Q are ineligible to enroll in
minimum essential coverage other than coverage in the individual market for a month in
2016. The annual premium for M, N, P, and Q’s applicable plan is $20,000. The
adjusted annual premium for M, N, P, and Q’s applicable benchmark plan (within the
meaning of §1.36B-3(f)) is $25,000. M and N’s household income is $80,000, which is
347 percent of the Federal poverty line for a family size of 4 for the taxable year.
(ii) Under paragraph (e)(4)(ii)(C) of this section, the credit allowable under section
36B is determined pursuant to section 36B. With household income at 347 percent of
the Federal poverty line, the applicable percentage is 9.5. Because each month in 2016
is a coverage month (within the meaning of §1.36B-3(c)), the maximum credit allowable
61
under section 36B is the excess of the premium for the applicable benchmark plan over
the product of the household income and the applicable percentage ($17,400).
Therefore, under paragraph (e)(4)(ii)(A) of this section, the required contribution for M,
N, P, and Q is $2,600. Under paragraph (f)(2) of this section, M, N, P, and Q have
affordable coverage for 2016 because their required contribution ($2,600) does not
exceed 8 percent of their household income ($6,400).
..........................
http://www.irs.gov/PUP/newsroom/REG-148500-12%20FR.pdf
“What if you make less than $20K a year, “
Read the post. The family’s payment will be $2600.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.