IRS-says cheapest obamacare plan is

[g8orbill]

read it and weep


http://cnsnews.com/news/article/irs-...e-20000-family

from the article

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.

[QGator2414]

Originally Posted by g8orbill

read it and weep


http://cnsnews.com/news/article/irs-...e-20000-family

from the article

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.

If you want a headache...

Open the link to the IRS document the example is found in. To think that is now part of our tax code...

[GatorAbe7]

Originally Posted by g8orbill

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.

So this is how ObamaCare promises to protect citizens from soaring medical costs?!?!?!

[gator421]

At least the legal system will see a huge boost in their business. Time to consider law school?

[mocgator]

I wonder when the revolt will start when people start figuring this out.....

http://cnsnews.com/news/article/irs-...e-20000-family

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.

[corpgator]

What kind of care could you get for $20k? Does anyone here pay that absurd amount? You'd have 130k if you just put the money in the bank over 5 years. That would cover most situations.

[PSGator66]

It is amazing that the same idiots who voted for this clown never looked at his policies they just went by what they thought was cool. The same people know more about hoax girlfriends, Dan Marino's and the Kardashians than they do about things that actually affect them.

[DieAGator]

Poor ethnic groups won't have to pay for it.

[orangeblueorangeblue]

$20k seems like a really low estimate, actually.

[Emmitto]

Already $20K.

http://money.cnn.com/2011/05/11/news...dex.htm?iid=EL

http://money.cnn.com/2012/03/29/pf/h...osts/index.htm

Even the lowball surveys put it at $16K.

http://money.cnn.com/2012/09/11/pf/i...ums/index.html

If a similar trend as the last decade continues, $20K by 2016 seems far too optimistic to me.

[orangeblueorangeblue]

Yeah that was my thought as well. Add in government and it would go up even more.

[orangeblueorangeblue]

Although, to be fair, those estimates are for "health care," not health insurance. It's probably worth looking at the differences.

[malligator]

Originally Posted by orangeblueorangeblue

Although, to be fair, those estimates are for "health care," not health insurance. It's probably worth looking at the differences.

First para of OP's link says 'insurance'.

[orangeblueorangeblue]

Yes, that's what I said.

[orangeblueorangeblue]

The articles Emmitto posted were about "health care" hence my call for an apples to apples comparison.

[Emmitto]

Originally Posted by orangeblueorangeblue

Although, to be fair, those estimates are for "health care," not health insurance. It's probably worth looking at the differences.

True. But the last one is specifically premiums. I'm guessing the first two include deductibles/out of pocket costs and accounts for the difference.

Either way, a $20K average premium four years from now seems dubious. If the average only goes up 7% per year, which until this past year (4%) has been the low side, then $20K is a reasonable estimate although still low. And if it is more like 8-9% then it's definitely low.

[GatorFanCF]

This is a BRILLIANT wealth distribution system. Think on it: you have a family of four and your net worth is zero, who cares about insurance...go without and pay modest fine. Same family of four with a net worth if $500,000 will likely either cough up $20K annually and see their wealth diminish OR role the dice and hope they are not wiped out by a catastrophic illness.

[orangeblueorangeblue]

How exactly can they "role" the dice in that scenario?

[wgbgator]

If your net worth is zero, you don't have to worry about the tax or buying insurance, because you qualify for Medicaid. That goes up to 133% of the poverty line, if you're in a state doing the expansion.

[orangeblueorangeblue]

Originally Posted by GatorFanCF

Same family of four with a net worth if $500,000 will likely either cough up $20K annually and see their wealth diminish OR role the dice and hope they are not wiped out by a catastrophic illness.

I'm trying to figure out how this is different than it is today.