Skip to comments.IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family
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 Js household income is $120,000. H and Js 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).
He is trampling out the vintage where the grapes of wrath are stored....
Someday it will really suck to be Obama
Correctamundo! And the stupid short-sighted insurance companies fell for it.
Remember, one of the most replaceable things in America is a member of the House. They come up for election every 2 years ~
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"?
What will the cost per family be once you factor in all of those illegal aliens that will soon be granted amnesty?
Thank you Chief Justice Roberts, you no good two faced spineless slimy SOB!!!!!!!!!!!
“Bronze Plan” Who elected him?
That sounds like something straight out of the Soviet Union.
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.
IRS: The Cheapest Obamacare (STEALTH TAX) Plan Will Be $20,000 Per Family Of Five - Obama And Democrats Are In Your Wallet!
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.
Well it does provide 15,000 additional “good” jobs, LOL.
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.
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!
Wow! The revolution might start much sooner than I thought.