Monday, February 04, 2013

IRS: "Obamacare Will Cost Average Family $20,000 Per Year"

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Back on March 23, 2010, President Obama hugged HHS Sec. Kathleen Sebelius and then Speaker of the House Nancy Pelosi, thanking them for helping ram his so-called "Affordable Healthcare Act" through Congress before members had even read it.

The President promised that now everyone would have "affordable healthcare."

Sometimes things are not as they seem.

Three years later we find it is not affordable.

But everyone will have it. Except those given special exceptions---like Congressional members, etc.

And if you don't "have it", the IRS will impose a penalty.

In an attempt to create an assumption of what people can expect as Obamacare comes in effect, the IRS reported last week that it will cost a typical family $20,000 per year.


Here are some details.

Found in examples used in the IRS report to help families understand how to calculate the penalty if they do not buy the mandated health plan is the $20,000 number.

The IRS used examples of a family of 4 and a family of 5 people and the cheapest plan, the "bronze" plan of Obamacare, to make the calculations.

This "affordable healthcare plan" will be in full effect in 2016 as its father leaves office to retire in Hawaii.

CNS news has taken a careful look at the IRS report. This is what they found:

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).

This is a glaring example of how America is being led off the cliff.

God help us.

Be Informed. Be Vigilant. Be Discerning. Be Active. Be Involved. Be Prayerful--Very Prayerful.