IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family…

January 31, 2013 7:21 pm  

(CNSNews.com) – 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.

SPECIAL: ObamaCare Must Be Destroyed With A Vote Of Congress!

The IRS’s assumption that the cheapest plan for family 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 examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze 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).”

1,100 Green Berets set record straight on guns
Obama's Army Invades Galveston, Texas

Top Stories

Federal Judge Blasts Obama Lawyers Arguing Obamacare Case (Newsmax) - A U.S. judge on Thursday blasted the Obama administration's motion to dismiss a lawsuit brought by Republicans in the U.S. House of Repres...
Senate GOP Backing Plan to Extend Obamacare Subsidies If the Supreme Court strikes down current subsidies, some Republicans are wary of booting millions off health care rolls. (Politico) - Preparing fo...
Obamacare Co-Ops Use Tax Dollars To Lobby For More Tax Dollars (Daily Caller) - Health Republic Insurance of New York paid K Street lobbyists to help it secure $90 million in federal “solvency funds,” allowing...
Four Words Could Sink Obamacare (NY Times) - They are only four words in a 900-page law: “established by the state.” But it is in the ambiguity of those four words in the Affo...
Supreme Court’s ObamaCare Ruling Could Hit Millions, Set Up Pol... (Fox News) - The upcoming Supreme Court decision on the Affordable Care Act could wipe out insurance for millions of people covered by the president...
Why the US Consumer is About to be Crushed: The Obamacare Inflati... Explosion in costs (Infowars) - For the past three years, the biggest argument supporters of Obamacare would trot out every single time when faced ...

Comments


Please help us stay spam-free. Mouse over a spam post and click the X to report spam.