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

[petegz28]

(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).”

http://cnsnews.com/news/article/irs-...e-20000-family

[stonedstooge]

Will the 11 million illegals have this taken out of their checks?

[durtyrute]

If they want government sponsored healthcare why don't they stop spending eleventy billion dollars a year on lasers and invisible planes and just pay for the shit themselves?

[Garcia Bronco]

wow, that's about 16k more than a family of the same size would pay today at my company with a 2k deductable.

[Dayze]

Originally Posted by durtyrute

If they want government sponsored healthcare why don't they stop spending eleventy billion dollars a year on lasers and invisible planes and just pay for the shit themselves?

and all the world policing and nation building. the defense budget is retarded.

more like the world police budget.

[Direckshun]

[HemiEd]

Wait, what? That shit was supposed to be free!

[stonedstooge]

Originally Posted by HemiEd

Wait, what? That shit was supposed to be free!

Only to the illegals

[HemiEd]

Originally Posted by stonedstooge

Only to the illegals

True, and that is not a change. They get help now when needed.

[mnchiefsguy]

Originally Posted by Direckshun

Nice try at deflection. 20k is 20k whether it is linked to on Drudge or not.

So much for Obama not raising taxes on the lower and middle class. Should be calling his plan Obamataxyourassoffcare.

[stonedstooge]

Originally Posted by Direckshun

Should have circled the 3rd item as well. Added to the Welcome Wagon package for the illegals

[Bwana]

Originally Posted by HemiEd

Wait, what? That shit was supposed to be free!

Yeah it's a package deal with the free cell phones.

[alpha_omega]

Originally Posted by Direckshun

Just my opinion, but that schtick is getting old.

[Silock]

Originally Posted by Direckshun

Attacking the source doesn't change the argument. You know that.

[alpha_omega]

Also....are they really going to call it "Bronze, Silver, Gold, Platinum?" sounds more like a car-care package.