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

[La literatura]

Originally Posted by frazod

This is much more fun. How much longer until you throw another one of infantile temper tantrums? The last one was epic.

It depends on how quickly you say something completely stupid. Knowing you, it won't be long.

[La literatura]

Originally Posted by petegz28

Thanks for advice, kid....

"Out of the mouths of babes. . . ."

[petegz28]

Originally Posted by La literatura

It depends on how quickly you say something completely stupid. Knowing you, it won't be long.

Well at least we now have you agreeing that you throw temper tantrums. The next step is teaching you to act more like a big-boy instead of throwing said tantrums.

[La literatura]

Originally Posted by petegz28

I think Jensen might be onto something here. Do you think there could be a possible lack of integrity in our media?

I'm just glad he is here to educate us all on such matters.

I don't think right-wing bullshit is "our media" but it certainly seems to be your media.

[La literatura]

Originally Posted by petegz28

Well at least we now have you agreeing that you throw temper tantrums. The next step is teaching you to act more like a big-boy instead of throwing said tantrums.

You do realize that your reputation on this site, aside from being a right-wing mouthpiece, is for throwing temper tantrums about sports, correct?

[suzzer99]

Originally Posted by petegz28

Parts of Obamacare level it out. Parts of it make it worse for everyone.

The only people who will have it significantly worse under Obamacare are the free riders who currently have de facto health insurance without paying for it. Although in the long run they may be better off as well for not having to go bankrupt over medical bills.

If the Republicans had implemented the ACA as an alternative to single-payer - as they proposed to in 1994 when the Heritage Foundation came up with the idea as a solution to the free rider problem - we'd call it Newtcare, and most of you on this forum would be fine with it.

[frazod]

Originally Posted by La literatura

It depends on how quickly you say something completely stupid. Knowing you, it won't be long.

By stupid, would that be like you getting all snippy because I'm not defending the subject matter of a thread that somebody else posted, all because you went all white knight defending your girlfriend Deflecshun?

[La literatura]

Originally Posted by frazod

By stupid, would that be like you getting all snippy because I'm not defending the subject matter of a thread that somebody else posted, all because you went all white knight defending your girlfriend Deflecshun?

By stupid, I mean a typical idea that you form in your mind. Or, your failure to come up with an answer to my multiple choice question. You're on the clock, man! (I mean my clock, not your actually job's clock, which I don't think anyone actually expects you to follow)

[CoMoChief]

People are just ****ing stupid if they really thought that this plan would:

Make insurance premiums cheaper across the table

Allow more coverage for those who are sick and poor

Wouldn't cost American taxpayers a dime

[frazod]

Originally Posted by La literatura

By stupid, I mean a typical idea that you form in your mind. Or, your failure to come up with an answer to my multiple choice question. You're on the clock, man! (I mean my clock, not your actually job's clock)

FRAZOD WON'T ANSWER MY QUESTION!!!!! MOMMY!!!!!!

[alpha_omega]

Originally Posted by suzzer99

The only people who will have it significantly worse under Obamacare are the free riders who currently have de facto health insurance without paying for it.

Such as who? could you be more specific?

[Garcia Bronco]

Originally Posted by suzzer99

What I thought he was saying is that they gave him the choice of a high deductible plan, or getting his own insurance and receiving a credit. That would actually be a pretty good option - as the big drawback in the past was that if you try to get your own insurance you have to worry about pre-existing conditions. But now it's like everyone is on a big group plan, so I wouldn't be surprised if some companies start doing that.

Mine has gone to a HDP and LDP plan, but the difference in deductible is so small and the cost so great that you might as well go with the HDP. Compound that with a well stocked HSA and the deductible no longer matters for me. As you know, the AHCA has made it illegal for heath insurance companies to deny individuals, just like group plans, for pre-existing conditions.

I think what people often forget in group plans that even though you pay a co-pay, premiums, and deductibles is that it was still subsidized by the company. Few realize that they are not paying full price on a company plan.

[La literatura]

Originally Posted by frazod

FRAZOD WON'T ANSWER MY QUESTION!!!!! MOMMY!!!!!!

I'm not sure it's a question of "will and won't" but rather, willful ignorance.

[frazod]

Originally Posted by La literatura

I'm not sure it's a question of "will and won't" but rather, willful ignorance.

Either that, or being on the clock of some pampered pissant **** means absolutely nothing to me.

[La literatura]

Originally Posted by frazod

Either that, or being on the clock of some pampered pissant **** means absolutely nothing to me.

And that explains why you spend the work days doing, well, this.