The Obama Hustle

The Rediscovered Truth About Barack H Obama

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

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English: President Barack Obama's signature on...

By Matt Cover 

(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.

The IRS’s assumption that the cheapest plan for a 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).”

– See more at: http://cnsnews.com/node/634414#.US7o2Lkz6CY.facebook

One Response

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  1. From the article… Re “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.”

    If you go to the actual article and click the embedded link contained in that paragraph, and then read the “final regulation,” you will find that it is not final at all.

    It states…
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    ACTION: Notice of PROPOSED rulemaking and NOTICE OF public hearing.
    SUMMARY: This document contains PROPOSED regulations relating to the requirement to maintain minimum essential coverage enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010, as amended by the TRICARE Affirmation Act and Public Law 111-173. These PROPOSED regulations provide guidance on the liability for the shared responsibility payment for not maintaining minimum essential coverage. This document also provides NOTICE OF a public hearing on these PROPOSED regulations.

    DATES: COMMENTS MUST BE RECEIVED BY May 2, 2013. Outlines of TOPICS TO BE discussed at the public hearing SCHEDULED FOR May 29, 2013, at 10:00 a.m., must be received by May 3, 2013.
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    In other words, it ain’t happened yet; therefore, it ain’t final… Which means, contrary to what this article would have you believe, it can STILL be aborted IF you scream loud enough… So… quit yer bitching about something that has not happened yet and do something about it before it DOES happen!

    Another thing… Even if this proposal is made final… It is still only an Internal Revenue Service Regulation giving an EXAMPLE to show taxpayers how to do their taxes. The $20,000 figure is simply a part of a hypothetical example, not an assumption of anything on the part of the IRS about ObamaCare. Whatever assumption is being made is being made by the author of this article; and, he apparently does not even know the difference between a “final regulation” and a proposal.

    Jesse T Mims

    February 28, 2013 at 7:33 pm


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