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01
Feb

IRS: Family Health Plan Cost $20K in 2016!

Written by dreilly. Posted in Blog, health care reform, PPACA, premium costs

A recently released IRS final regulation makes an assumption that the average cost for a family health insurance plan in 2016 under ObamaCare will be $20,000.  And that’s for the lowest plan benefit!   

Beginning in 2014, the individual mandate, upheld by the Supreme Court last summer, requires U.S. citizens to either carry qualified health coverage or pay a tax.  Qualified plans are established as metal options, with a bronze design offering the lowest benefit availability and platinum offering the highest.  Silver and gold fall incrementally in between. 

In an effort to help educate consumers about the potential for tax penalty under the law the regulation provides several situational examples.   Making the assumption “The annual national average bronze plan premium for a family of 5 is $20,000,” IRS goes on to explain how that same family of five (2 adults, 3 children) with household income of $120,000 would face an annual tax penalty of $2,400.  

For the uninsured, a new $20,000 health plan or a $2,400 tax….what’s a family to do? 

For those of us who are insured….The Kaiser Family Foundation showed family premiums topped $15,000 a year in 2011.  IRS now projects $5,000 more, or 25%, by 2016.  So what happened to the ObamaCare promise of  “a health care plan that would save the average family$2,500 on their premiums?”

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