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).
That is a worrisome thought...since whatever hell-hole they came from, the USA looks like Heaven.
That said...my daughter’s doctors, who saved her life, were from NZ, Chile, & Jordan.
It was American specialists in the good old USA who screwed up in the first place. All the foreigners, not exactly third-world, but first-class all the way...
I would put my life and that of my family in the hands of a foreign physician 9/10 before I let another degree-mill American touch the chart.
Sorry, bad experiences...a nearly dead kid, a year-long vacation in NICU/PICU...and over a million in medical expenses in 3 years....and the foreigners at CCF (Cleveland Clinic) figured it out, fixed it via surgery and literally saved our family for less than $20K.
Foreign doctors aren’t our problem. Foreign Takers ARE, in healthcare and everything else.
Most large companies want socialized medicine. They pay the $20K now, and want to get out of it.
I even hate well intentioned Democrats. And I mean hate. I have lost most of my empathy for even stupid people that don’t know any better. It is time for some Charles Darwin action in America.
“I hope the 47% of the US get their just desserts.”
Rest assured, they will - theirs and yours. You ain’t seen nothin’, yet. Elections have consequences.
If I were you FRiend, I wouldn’t place my future in the hands of the Republicans in the House.
Pre Obamacare, you may have paid a lot for good care. Post Obamacare, you are forced to pay a lot for no care.
The MBS counterfeiters, found themselves holding their own bag, with paymentS demanded:
1. “Banks” (so called “banks” in reality Anti-Glass Steigal scammers)
2. “Insurance” (so called “insurance”, in reality equity holders of counterfeit #1, and sellers of bankrupt global sovereign bond funds)
3. Government fund and pension “invest” in the counterfeit “market”, in reality government fund market.
They are attempting to take the ponzi-bag and extort their way off everyone else’s backs, while most importantly, keep their salaries jacked to not face the music.
Repeating, Extortion-Care is a violation of the Civil Rights Act on the basis of “privilege right,” due to Unequal ACCESS. These “Tiers” are further documentation behind the attempted Extortions.
And the attempted construction of an ongoing “Extended Territorial “Work/Labor Camp” ETLC
Someday it will really suck to be Obama
I only pray I live long enough to see it.
The sooner the better! I hope before my next b’day.
Works well in Great Britain. A few of these imports served as doctors in the morning, then in the afternoon unsuccessfully tried to blow up an airport. Which makes one wonder about their capability..not smart enough to set off a bomb? Hopefully their patients were reassigned to a non-bombing doctor.
Everyone remember this little in-your-face parade? Yeah. I though you might.
“unintended consequences”? None of Obama’s consequences are unintended. He is out to destroy as much of America as he can and he’s doing a fine job.
TAXERS for ALL but THEMSELVES:
“Not OUR families, you worthless maggots (taxpayers).”
The creatures outside looked from pig to man, and from man to pig, and from pig to man again; but already it was impossible to say which was which.
“Obama is turning us into slaves.”
Bingo. “2016 - Obama’s America” spelled it out. We are right on target.
......Sorry, but I had to fix it.
Everyone who voted for this crazy man deserves to be vilified.