Cheapest Obamacare plan to cost same as a new car each year - $20,000
At $20,000 per year, somebody will have to pay.
There is no such thing as a free lunch and now, the IRS is telling people that the cheapest Obama care plan will cost $20,000 per family. Not everyone will have to pay this full amount, but somebody will have to.
Most of the cost of healthcare for this category of people will be paid by the most successful workers who will see their rates and taxes increase dramatically.
A family of five, according to IRS calculations, will have to pay $20,000 per year for their healthcare. That's the same as the price of a modest new car, every year, for life.
Or, they can go without and pay the IRS a penalty tax.
A $20,000 year figure is for the cheapest Obamacare plan. For people with better plans, they will see their costs rise even more.
Critics of Obama care have predicted a looming financial disaster with millions of Americans unable to afford health care for themselves. Worse, their employers will be forced to cut back under the crush of premium increases and taxes.
Ultimately, the federal government will have to subsidize health care for millions compelling it to raise taxes perpetually, or to deficit spend until one day the federal government becomes entirely insolvent.
The problem of course, isn't that the government wants to ensure people have affordable access to reasonable health care. The heart of the problem is that medical costs are skyrocketing out of control and there is no way to fix prices without causing disruptions and shortages in the market.
Now, as healthcare demand goes up, so will prices across the board. Critics say that the costs are prohibitive for all, and that the entire system will eventually collapse if not propped up by massive government spending.
Here is the IRS calculus as stated in their regulations.
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)).
"(iii) The sum of the monthly penalty amounts is $2,400 ($200 x 12). The sum of the monthly national average bronze plan premiums is $20,000 ($20,000/12 x 12). Therefore, under paragraph (a) of this section, the shared responsibility payment imposed on H and J for 2016 is $2,400 (the lesser of $2,400 or $20,000)."
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