IRS presents cheapest Obamacare plan at $20K, so get insurance or pay the fine

The cheapest Obamacare health insurance plan will cost a family $20,000 per year as Americans will be forced to purchase the plan or face the IRS penalty.

Photo by Infrogmation

CNS News reports that “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 is presenting examples of plans 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.

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.

Check out the full analysis, with example here

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