Hey, Mr. And Ms. Average American Couple, Under ObamaCare You Can Pay $20,000.00 Or $2400.

Which do you think they’ll choose?

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.

Ok, so the cheapest plan for a middle class family is $20,000. What happens if they opt to pay the “penalty/tax” instead?

“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).”

Hmmm. And you can sign up for coverage at any time? So what I’m hearing here is that I can pay $200/month, hoping I stay healthy. But the instant that something goes wrong, why I just sign up for coverage. Sweet. That’s much less expensive than what I’m doing now, under RomneyCare, which is ObamaCare. Incidentally, the family coverage under ObamaCare, even at the cheapest level, is HIGHER than what we pay in Massachusetts. You can get a family bronze plan here for something like $1200/month or something like $15,000/year. ObamaCare raises the rate to $20,000.00. As John Kerry would say: Bring. It. On.

- Aggie

2 Comments »

  1. Bloodthirsty Liberal said,

    February 1, 2013 @ 5:28 pm

    Your friend in another post is correct, Aggie. ObamaCare is designed to be a cluster[bleep], thereby ushering in single payer national health.

  2. judi said,

    February 1, 2013 @ 10:27 pm

    I agree that they made it to fail so we would move to a single payer system. And I think they would have succeeded if there hadn’t been so much overreach in other areas. I think we are going to be able to stop obamacare, weather or not it is implemented. I think the problem of those who cannot afford health insurence will fall back on the states, where it belongs. Because, I think that is what will ultimately happen with many of the things that have happened under Obama.

    Sounds a little optimistic, I know. I know people can’t be reached, convinced, educated about what is happening. I know they don’t care. But just wait until they are truely affected by all that is happenning. They are going to feel it. We all are. There won’t be any escape. And then, the republican governors who have been successful, Scott Walker, Bobby Jindal, they’ll be the rock stars and people will look to them for answers.

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