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

“(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:

“Example 3. Family without minimum essential coverage….”

Full article

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  1. The Fly


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  3. ottnott

    You posted this item just for me, right, Cronk?

    Aside from the silly claim that numbers used in examples represent an estimate of actual costs in the future marketplace, there are some amusing additional examples of mental midgetry in the cnsnews.com article.

    My favorite is their use of HTML tags to label the IRS document a final regulation when the document states high up on page one that it is a “Notice of proposed rulemaking and notice of public hearing”.

    I also appreciated the authors use of evidence quoted directly from the IRS document to prove the author’s repeated claim that the $20,000 cost used in the example represented the “cheapest” or “minimum” cost for family coverage. The quoted text used to back up the claim:
    “The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000″.

    Average, minimum, whatever.

    As long as gay bitch dogs can get Obamacare insurance while serving in combat roles in the US military, I’m satisfied.

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    hahaha ottnott,

    just for you. nothing gets past you.
    i think you should run for president. perhaps you could clean this country up.

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  5. drummerboy

    it(0zer0) said today he will waiver to religious groups on contraception………..this country is fucked,it’s done.dont even need to put a fork in it,if you do it will collapse. truly insane anymore.hey mr.president,what the fuck are you going to do if a family of 3 only make 20 k.

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