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

President Barack Obama hugs HHS Secretary Kathleen Sebelius and then-House Speaker Nancy Pelosi after signing the Obamacare law on March 23, 2010. (White House photo/Pete Souza)

(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 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:

REST OF IT

Favorite

5 members favorited this

▶ Reply to This

Replies to This Discussion

Permalink Reply by Lawrence Edward Calcutt on February 1, 2013 at 12:20pm

Hollywood, Thanks for the post....When I got sick last year ( March 2012). I let the health OHIP Care System get me better. At least that is what I thought they did. Well it appears that I was fooled. They did nothing for me. The reason was I was not sick. They just went ahead and did 9 tests on me and keep me in the hospital for 5 days and racked up an huge bill. which the Ontario Government paid without question and at the end of it all they told me I had a Mini Stroke, the same thing the little girl in the Ambulance told me when she first saw me 5 days earlier. They also prescribe 3 different drugs which I would have to take for the rest of my life if I wanted to live. Those 5 days in the Hospital was the most fun and restful vacation I have had in the last 15 years. My 'Taxes At Work' for me. Now I can die happy. BTW, I did not even finish all the drugs I was supposed to take in order to live.

And....no, I have never been this sick in my whole 75 years. I would not even wish this on.....Obama.

▶ Reply

Permalink Reply by Christopher on February 1, 2013 at 12:51pm

Loved that picture Lawrence - tells a thousand words...

▶ Reply

Permalink Reply by Christopher on February 1, 2013 at 12:52pm

Liked the post - not the PLAN!

▶ Reply

Permalink Reply by Marley Jones on February 1, 2013 at 7:23pm

And there will be no dental or opthalmology in this piece of shit either.Dental, which we all Really Need, so since we're all so unhappy about it, what are we gonna do?! Accept it? No.....

I worked my whole life. And I never thought I'd have to take my Social Security INSURANCE. But at this time, I do.

Absolutely nothing is covered by this f'd up plan either :).

When my dad was in the hospital and his gazillion dollars worth of insurance ran out, they shipped him off to a nursing home/warehouse. I am relieved that he died in the ambulance getting there. Spent his time in the military in Eisenhower's headquarters because he had fast fingers and a good brain for decoding. Funny thing: he never spoke about the war. I can only assume, knowing my dad's brain, that he knew everything we're prgrammed to know is BS.