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).
0bamaCare will seize up the health care system like a handful of gravel poured into the carburetor of a running engine.
The best and brightest in US health care will probably migrate to the Caribbean where wealthy patients can access fairly easily.
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.
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.
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!!!
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.
Dear King Obama,
Darn. May I have permission to ask you a question about your healthcare bill?
Very truly your stooge,
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)
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.
You have brilliantly proved that great humor is grounded in the truth! :-D
Someday it will really suck to be Obama
I only pray I live long enough to see it.
And the insurance companies supported their own doom. Idjits.
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
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.
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.
Unless I missed something I think that $20k per family is for premiums that go to private insurers not into the Treasury.
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.
Just what would you like them to do? Better yet, what power would you like them to use to change this?