Tuesday, February 05, 2013
New Numbers On ObamaCare - 7M Americans to Lose Current Plan, Amnesty To Increase Costs $2T
Remember when President Obama and his friends were selling ObamaCare as a savings? Remember when we were told that if you liked your current insurance, you'd be able to keep it?
According to the non-partisan Congressional Budget office, up to 7 million Americans who now have health insurance could end up losing their current care because new regulations make it cheaper for many employers to pay the mandated penalty rather than pay the increasing health premiums and administrative costs. And as the IRS has now revealed, thanks to those sharply rising premiums ObamaCare has created, getting your own ObamaCare insurance isn't going to cost $2,000 as you were previously told. For a family of five, two adults and three children, the lowest level of coverage, the Bronze is going to cost - wait for it - $20,000.
It will be more, a lot more if you need Silver, Gold or Platinum coverage because of your particular circumstances.
Since the mandated penalty is capped at either the annual average Bronze premium, 2.5 percent of taxable income, or a minimum of $2,085.00 per family in 2016, guess what? A lot of people will be forced to go without healthcare whom now have it and pay the penalty instead.
Here's the IRS giving us an example of how this works:
“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)).
"(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).”
Where does all that money go? The penalties (the always humorous IRS still insists on calling them that, even though the Supreme Court ruled that they were a 'tax')go right to Bog Government to fuel other shovel ready projects.
Bottom line,if you now have a healthcare plan you can live with but your employer decides they can't afford it any more and opts to pay the tax penalties instead, your choice is going to be to either somehow come up with $20,000, pay an extra $2,085 plus per year or put the kids up for adoption.And that's for the minimum amount of coverage, the Bronze level.
Needless to say, the Leftist elites from President Obama on down who lied to you aren't going to be faced with this choice...they have their own plan that covers themselves and their families that's far cheaper, better and more inclusive.
And you though only the 'rich' were going to get soaked! As you were warned, ObamaCare was never about healthcare...it was always about higher taxes and a major transfer of wealth.
But wait, there's more. Aside from destroying MediCare so that care to the elderly can now be rationed, there's another landmine just around the corner designed to make the program even more of an expensive failure - the illegal imigrants President Obama want to legalize.
Any bill that provides amnesty for the 11 to 12 million illegal aliens now in the U.S. and gives them access to Obama Care (and it's difficult to see how they can or should be excluded)is being estimated by budget analysts on the Senate Budget Committee to increase costs to the federal government by between $120 billion to $200 billion in its first decade.
The Congressional Budget Office estimates that 7 million illegal immigrants lack healthcare insurance now, and something like 85 percent of them have incomes low enough to qualify for subsidized ObamaCare benefits.
Obamacare is already calculated by the CBO to increase unfunded mandates by $17 trillion over 75 years, or from $65 trillion to $82 trillion.
Legalizing the illegal immigrants and adding them to ObamaCare is estimated to add another $2 trillion to those unfunded mandates.
The answer of course will be to drastically cut benefits to patients, severely ration care and cut salaries for medical professionals, which will exacerbate the problem by leading to a shortage of doctors, nurses and technicians willing to service ObamaCare patients.
That's what's happened in the UK since the Labour Party brought in their own version of ObamaCare. If you're in Britain and you have money, insurance is no problem and you can go to a private doctor. If you don't, you're covered by National Health but you'll wait months to see a physicians even for ordinary procedures.
There's a glimmer of hope here. Since the ridiculous expense is now becoming obvious and the pain starts in 2016, one can only hope that the next president and a congress with adults in it will repeal this unworkable nonsense before it causes too much damage.
And it's a long shot. but just maybe we will have learned as a nation not to take a face value any slick talking political con man promises us.