This is for the “bronze” plan.
Tell me who other than the insurance companies and pharmaceutical companies benefit from Obamacare? The poorest Americans were covered under Medicaid. Most other people were covered under their employers. The self-employed could buy fairly good plans for far less than $20,000 per year per family.
The key issue seems to be those with pre-existing conditions, which is a big problem, especially for those who suffer with the conditions. But did we need to hand over 1/6 of the economy to the IRS to address this very valid issue?
“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)).
This is a nightmare.
*The $20,000 number is controversial and some argue that the number was picked at random merely for illustration purposes. An editorial in IBD.com, (a publication we respect) puts the cost of a “bronze plan” at only $13,000. So we can breathe easy. That’s totally reasonable.