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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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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 NurtureĀ™)
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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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To: stboz

Someday it will really suck to be Obama

I only pray I live long enough to see it.


51 posted on 01/31/2013 3:29:54 PM PST by tet68 ( " We would not die in that man's company, that fears his fellowship to die with us...." Henry V.)
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To: 2ndDivisionVet

And the insurance companies supported their own doom. Idjits.


52 posted on 01/31/2013 3:30:21 PM PST by colorado tanker
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To: rhema
This government obviously expects many of us to forgo food, water, shelter, fuel, clothing and all other daily necessities so we have enough money to pay for obozo care or the IRS or go to jail. It looks like a lot of people are going to be going to jail. In jail?? Then they won't be counted as unemployed or subject to any other form of government subsidy. Obozo, Reid, Pelosi, Schumer, Bill Ayres and Bernadine Doarn must all be wetting their pants over this blow to our freedom. Now for our guns.
53 posted on 01/31/2013 3:30:41 PM PST by drypowder
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Freepers, your Contributions make every difference!
Please keep ‘em coming! Thank you all very much!

54 posted on 01/31/2013 3:31:00 PM PST by RedMDer (HEY LIBS! GUN FREE ZONE T-SHIRTS AVAILABLE NOW. I DARE YA!)
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To: RFEngineer

Ok....with a family of 5 as stated

” 300Mil Americans / 5 * 20,000 = $1.2 Trillion “

Leaves more money for fees etc. rhetorical question the same


55 posted on 01/31/2013 3:31:12 PM PST by RFEngineer
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To: rhema

It’s what the sheeple were told by the TV that they wanted, so they voted for it.

I’m completely out of sympathy for the stupid and uninformed now.


56 posted on 01/31/2013 3:31:12 PM PST by tcrlaf (Well, it is what the Sheeple voted for....)
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To: A CA Guy
“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.”
____________________________________________________

I think you're right!

There will come a point where the Producers tell the Takers to go F off! Many Producers will see the benefits in becoming Takers. These idiots haven't even begun to consider the unintended consequences.

Oh, and chaos is only good if the Dictator can control it. If you doubt me, ask Nicolae Ceausescu.

57 posted on 01/31/2013 3:33:12 PM PST by Artcore
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To: RFEngineer
300Mil Americans / 4 * 20,000 = $1.5Trillion

Unless I missed something I think that $20k per family is for premiums that go to private insurers not into the Treasury.

58 posted on 01/31/2013 3:33:12 PM PST by TigersEye (The irresponsible should not be leading the responsible.)
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To: rhema
If this hits as described, there ought to be an outrage against all the companies who sucked up to Obama for an exemption. Pick them off with boycotts.

I hope at the appropriate time Mr. Smith introduces legislation requiring Congress, the Administration and the Judiciary to be subject to the same healthcare legislation as the proletariat.

59 posted on 01/31/2013 3:33:12 PM PST by Rebelbase ( .223, .224, whatever it takes....)
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To: Artcore

Just what would you like them to do? Better yet, what power would you like them to use to change this?


60 posted on 01/31/2013 3:34:18 PM PST by Toespi
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