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

[fnbplanet]

January 31, 2013

(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 ((2)(ii) and ((2)(iii) of this section, the applicable dollar amount is $2,780 (($695 x 3 adults) + (($695/2) x 2 children)). Under paragraph ((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 ((3) of this section, the excess income amount is $2,400 (($120,000 - $24,000) x 0.025). Therefore, under paragraph ((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).”

[GinaG]

Obama sucks!

[The Machine]

$20,000 ouch ........ I'm so glad healthcare is free here , otherwise I'd be broke

[jaman]

Obama sucks! :angry:/>

well...at least he did in collage

[Shabibilicious]

well...at least he did in collage

Roomie ?

GO RV, then BV

[sxsess]

**ck Obama! This will never work. People such as myself will never pay this and never use this so-called healthcare. We need to stand firm and together to fight these slimmy punks!

[The Machine]

well...at least he did in collage

Ha ha ha that's the funniest thing I've read today +1

[Captjohn]

Obama's "low-information voters" are in for a rude awakening when they get their health insurance bills or try to apply for health insurance. Won't bother Obama though, since he and the media will just blame it on George Bush and those awful Republicans. Never ends.

[SgtFuryUSCZ]

***///***///

Hey, nancy pelosi.... you wouldn't tell us what was in it and told

us we'd have to pass it to see what it was all about.

Well, now we know - and it's unacceptable.

We knew then we didn't want it - you shoved it down everybodys

throats like a cheap oval office cigar.

Now we're telling you, you psycho b***h:

WE DON'T WANT IT.

If you and your lying, sneaky ilk think you're going to get away

with it in the end - you've all got another thing coming!

f*** you and your whole evil coven!

***///***///

Edited February 1, 2013 by SgtFuryUSCZ

[fnbplanet]

Don't hold back, sarge!

Hillarious, who first tried to bring this healthcare deal upon us, won't stand a chance, even if the other party nominates Ozzy Osbourne. When they see - and FEEL, what the democrats have done to them, it won't even be a contest.

[stonewall67]

Don't hold back, sarge!

Hillarious, who first tried to bring this healthcare deal upon us, won't stand a chance, even if the other party nominates Ozzy Osbourne. When they see - and FEEL, what the democrats have done to them, it won't even be a contest.

Don't be so sure. 50% of the country will not have to pay the $20,000 or even the Penalty.

[DiveDeepSix]

well...at least he did in collage

ROFLMAO, The Chicago BathHouse BackDoor Bandit has struck again!!! :ph34r:/>/>/> :lmao:/>/>/> :lmao:/>/>/>

I don't know if any of you have gotten your taxes done yet, but I was just working on my wife's with H&R Block and she was showing us the penalties coming up on healthcare if you don't have insurance this year will be bad but next year is much much worse. So all the suckers who voted for this dip$#@! are in for their big surprise they wanted!! What free healthcare is not free? In the words of Walter the puppet, "Ya Dumb@$$!" :angry:/>/>/>

***///***///

Hey, nancy pelosi.... you wouldn't tell us what was in it and told

us we'd have to pass it to see what it was all about.

Well, now we know - and it's unacceptable.

We knew then we didn't want it - you shoved it down everybodys

throats like a cheap oval office cigar.

Now we're telling you, you psycho b***h:

WE DON'T WANT IT.

If you and your lying, sneaky ilk think you're going to get away

with it in the end - you've all got another thing coming!

f*** you and your whole evil coven!

***///***///

Tell us how you really feel ladies, and this time don't sugar coat it!

Edited February 1, 2013 by DiveDeepSix