31 Jan

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

Matt Cover @ CNS News:

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 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.

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About Curt

Curt served in the Marine Corps for four years and has been a law enforcement officer in Los Angeles for the last 20 years.

3 Responses to IRS: Cheapest Obamacare Plan Will Be $20,000 Per Family

  1. Nan G says: 1

    ObamaCare is flailing under its own weight.
    Too many want to ride the cart.
    Not enough will be pulling it.
    All the Obama Unionistas who supported ObamaCare initially now want waivers!
    27 states are taking waivers, too.
    How many people will fall below the mandatory level where they have to pay at all?
    1/5th of the US population is already qualifying for food stamps, perhaps they, too, should get FREE health care.

    That leaves very few.
    How many families of four or five will be headed by men who are willing to pay 1/6th of their income for some one else’s insurance on top of their own?
    Not too many.

    ReplyReply
  2. another vet says: 2

    @Nan G: How many planned for it? Probably not many. It’s poetic justice for those who voted for him. Unfortunately, they aren’t the only ones affected by it.

    ReplyReply
  3. Nan G says: 3

    http://news.yahoo.com/families-priced-health-overhaul-232003950.html

    OOPS!!!

    Nearly 500,000 children, under Obamacare, will still lack health insurance because many poor families will not qualify to get government assistance to buy health insurance because of how Congress defined “affordable.”

    Under the IRS regulations released on Wednesday, families that cannot “afford the employer coverage that they are offered on the job will not be able to get financial assistance from the government to buy private health insurance on their own.”

    The ”silver lining?”
    The IRS will not subject families impacted by this “glitch” to a tax penalty.
    Oh, double-plus-good!!

    ReplyReply

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