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Both links are the same. The IRS is NOT giving any information on the lowest minimun coverage cost; what the IRS is doing is seting up rules for the payment of the penalty if minumun coverage insurance is not purchased. The IRS is charged with collecting the penalty payment which will be added to taxes owed at the end of the year.
From what I read, the minimum premium is $5,000 not $20,000 as the CNS article reports.
These are only examples to understand the process of calulating penalty payment to the IRS for not buying minimum health care insurance.
[LEFT]pg.56
(D) Examples. The following examples illustrate the application of this paragraph
(e)(3). Unless stated otherwise, in each example, each individual’s taxable year is a
calendar year, the individual is ineligible for any other exemptions described in this
section for a month, the rate of premium growth has not exceeded the rate of income
growth since 2013, and the individual’s employer offers a single plan that uses a
calendar plan year and is an eligible employer-sponsored plan as described in
§1.5000A-2(c).
Example 1. Unmarried employee with no dependents. Taxpayer A is an[/LEFT]
unmarried individual with no dependents. In November 2015, A is eligible to enroll in....
The cost for the family is $20,000 for the "bronze" plan, which the IRS says is the cheapest.
If the premium is $5,000, then that means that some other taxpayer must pay that family's balance of $15,000... plus the taxpayers' own costs of $20,000!
It's not as bad as the title of the thread suggests. IT'S WORSE.
Wrong!
This section is about exemptions. Who's exempt and who's not, based on access to affordable coverage.
And this thread needs to be MERGED with the already existing thread.
Some people are so gullible. I suppose hate makes them that way. The IRS rule description uses money numbers not much more than pulled out of the air simply to show how the compliance rules would be applied. CNS obviously wants some people to think those are actual estimates of what premiums will be for there own reasons. Fact is, nobody knows what the premiums will be in 2016. As of last time I checked, KFF estimates 2014 family of 4 premiums to be about 12k.
Last edited by florida.bob; 02-01-2013 at 03:22 PM..
I'm guessing the fine will be assessed when you file your taxes. Check box 18 if you didn't pay for your health insurance as required etc. The entire country should just revolt and not check their pesky little box. **** on em. Most of these tools in DC don't even pay their taxes to begin with.
But the illegals will get it for free! Sure, let's let more of them in!
Americans are going to be living in the streets and the illegals will be moving into your
house!
...and if we don't pay for this $20k health care insurance plan, there will be a penalty fine, imprisonment or both, waiting for us.
Quote:
Originally Posted by Magritte25
I'll admit it. I'm dumb. How does the example show that the family will have to pay $20K for healthcare?
Quote:
Originally Posted by UNC4Me
So people can choose to pay 20K for insurance or pay a $2,300 penalty? And how is spending 20% of one's earnings on one item "affordable"? I am lucky to have insurance through an employer who defrays part of the cost. If that goes away, I can't afford to spend 20% or even 10% of my income for insurance. That $2,300 may be my best option.
Quote:
Originally Posted by michiganmoon
Holy crap, my premium has risen -- I haven't experienced Obama's predicted 3000% drop...I hope it happens soon!
Quote:
Originally Posted by Magritte25
Still not seeing where it cost my family $20k
Quote:
Originally Posted by HistorianDude
And it does not say that the "Cheapest Obamacare Plan Will Be $20,000 Per Family."
The thread title is a lie, and the OP is unadulterated bull****.
Quote:
Originally Posted by Sonic_Spork
Hey thanks for explaining the "so they are exempt" bit. In 2 threads I read people posting these examples and it all comes down to "XYZ, LMNOP, do NOT have access to affordable coverage" and then doesn't say what happens next! I'm like...so...they...are being ripped off for premiums and...then what? They're going to be penalized somehow? o.O
Funny how people keep posting weird excerpts and not really saying what is up or how it works.
Even in the worst case scenario that I could find, nobody was forcing a $20,000 cost on anybody. Because if you come right down to it, said family could always opt to just pay the $2K-ish in tax (depending on income)...so...yeah. Nobody's got to come up with $20,000 and these alarmist articles are silly. One assumes that as for the cost of said family's actual healthcare, they'd be doing whatever they are doing now, which is paying their Doctor bills or being collected upon or what have you.
There are a lot of gross misconceptions here.
That's what happens when government interferes and subsidizes something....none of you has ever borne the true cost of health care.
You people seem to have a tremendous amount of difficulty distinguishing between...
1] the annual cost of an health plan; and
2] the amount the employer contributes; and
3] the amount the employee contributes
It is very possible, even extremely likely, that an family plan will cost $20,000 per year.
But even if that were true, that is not what the employee pays.
As I have explained ad nauseum, the employee's contribution to their own health plan coverage is limited to 9.5% of household income.
So, which part of "9.5% of household income" do you people not understand?
As I have pointed out ad nauseum, the IRS is granting Safe Harbor to employers by allowing them to use the employee's 2013 W-2 Wage as a guide to determine the employee's costs for health plan coverage.
If you obtain health plan coverage through your employer, then your cost for the health plan is limited to 9.5% of your household income.....
Section 36B(c)(2)(C)(i). Household income for this purpose is defined as the modified adjusted gross income of the employee and any members of the employee’s family (which would include any spouse and dependents) who are required to file an income tax return.
There are conflicts because here you see the IRS using "modified adjusted gross income" and then Treasury and other agencies are using "disposable household income" or just "household income."
The definition of disposable income in Economics is not the same as the federal definition, specifically the IRS definition. The IRS definition of "disposable income" is your Adjusted Gross Income on your Form 1040/A/EZ
Again, I stress, this limitation of 9.5% is only for those people who obtain health plan coverage through their employer....not people who obtain coverage on their own.
So your cost for health care through your employer will be 9.5% of your income, plus your spouse, plus dependents who also file tax returns --- for many that will include your child age 16-26 who works and files a tax return.
So let's your spouse earns $48,000/year and you earn $42,000/year, then your child works a part-time job earning $6,000/year. That's $106,000 total, and then let's say you have income from rental property, interest income or any other income and and that brings your Adjusted Gross Income to $140,000.
Your cost for insurance through your employer will be 9.5% of $140,000 ($13,300) or $1,108 per month or $511 bi-weekly.
If you are already paying more than $511 bi-weekly, then your cost will drop and the difference paid by your employer. If you are paying less than $511 bi-weekly, then your employer will shift the cost to you so that you do pay $511 bi-weekly.
Now, depending on which regulations are actually finalized, it could be that your modified household income ends up being your Adjusted Gross Income, or your Adjusted Gross Income minus deductions (or whatever silliness they come up with).
The Safe Harbor for 2014 is to allow employers to use the employee's W-2 from 2013 in lieu of "modified household income" until the idiots extraordinaire figure out a way to collect information on household income and report it to your employer.
If you didn't want your employer to know that you get $1,800/month in rental income, too bad.
So either learn how to distinguish between the annual cost of your health plan, the amount your employer pays, and the amount you pay, or continue to look foolish.
But the illegals will get it for free! Sure, let's let more of them in!
Americans are going to be living in the streets and the illegals will be moving into your
house!
Scientists call the US republican party a "corporate propaganda group." And Fox news and Rush radio tell you people 100's of lies. And you are lying and manipulating here, by leaving out many important things.
Most/all of the money you speak of has already been paid for by Medicare or Medicaid cuts.
And if we kill Obamacare our government will have larger deficits in the future.
Obamacare saves money in the long run.
And America's smartest doctor's want a healthcare system like Obama's.
The purpose of Obamacare is improving the American populations health, and saving the 40,000 Americans who die each year from not having health insurance.
And don't cry about money. Republicans created America's national debt by cutting rich peoples taxes and creating huge deficits, and by the (insane) republican Iraq war. As soon as Bush's tax cuts for the rich end, and his Iraq war ends, we will be closer to Clinton's federal surpluses.
And "Obamacare" is a republican nickname, its actually called the "Patient Protection and Affordable Care Act." and/or "Health Care and Education Reconciliation Act of 2010."
The purpose of Obamacare is improving the American populations health, and saving the 40,000 Americans who die each year from not having health insurance.
Between the penalties, fees and premiums I'll wager we'll still have people dying who don't have a health insurance card in their wallets.
...and if we don't pay for this $20k health care insurance plan, there will be a penalty fine, imprisonment or both, waiting for us.
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