Obamacare Fines, Fees and Expenses Explained

February 05, 2013 | Ladies and gentlemen … when the IRS put these numbers out that the cheapest health care coverage for a family of four would be $20,000 a year, my reaction to that was, “That can’t be possible, because nobody can afford that. That simply cannot be possible,” and that’s the cheapest. There’s bronze, silver, gold, and then platinum premium. But $20,000 is the cheapest. The mistake I made is in telling our previous caller that that’s the cost that Obamacare will require private sector insurance companies to charge.

My mistake is, it’s not the private sector price. That’s the Obamacare price. That is the cost of insurance. The bronze plan is 20 grand for a family of five. For a family of four, that would be $16,000. It’s basically $4,000 a person, so a family five is 20 grand. That’s the Obamacare price. After Obamacare is fully implemented, that’s what it’s going to cost. Now, obviously people can’t pay that, so there are exemptions. In the first couple/three years, there’s a fine option. You can pay a penalty, and that starts at $2400. You don’t have insurance, but you’re also legal. One way or the other, Obamacare is going to cost you.

You’re either going to buy insurance and pay what it costs or you’re gonna pay the fine. Now, the first couple/three years of Obamacare, after full implementation, the fine relative to the cost of the insurance is cheap. That $2400 instead of $16,000 is cheap. But you still have to come up with the $2400. There’s gonna be a line item on your tax return for it. That’s why there are 16,500 new IRS agents as part of Obamacare. They are there to make sure that you either have insurance and can prove it, or that you’ve paid the fine. If you can’t pay the fine and you’re working, they will deduct it. It’ll be an additional deduction from your paycheck.

Just like FICA and your income tax deduction, it will be a new deduction. It’s not as though you’ll have to write a check for $2400. They’ll just take it from what you earn over the course of 12 months if that’s what you choose. You’ll have the choice to pay the fine or buy the policy. Now, after a short number of years the fine gets larger than the policy. The purpose of the fine is to obliterate private sector insurance. If people don’t buy insurance ’cause it’s so expensive and instead pay the fine, then the private sector health insurance companies are losing customers, obviously. And the more customers they lose, the greater the odds they’re gonna go out of business.

But after a while, that $20,000 is the Obamacare price, it is not the private sector price, and that’s the correction I need to make. Now, if your annual income is less than 200% of the poverty rate… Figure 80 grand. If your annual income is less than $80,000, then you will get a subsidy. I don’t know how much, but it’s calculated. You will get a subsidy on the $20,000 that you owe, and you’ll have to pay the balance. There no way around this, folks. I don’t think there’s any stopping Obamacare now. It’s done. The states are doing what they can when it comes to the exchanges and things like that.

This is from The Politico. “The federal health care law…” Brace yourself. “The federal health care law could nearly triple premiums for some young and healthy men, according to a forthcoming survey of insurers that singles out a group that might become a major public opinion battleground in the Obamacare wars. The survey, fielded by the conservative American Action Forum and made available to Politico, found that if the law’s insurance rules were in force, the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190% higher” than what it is today.

Let me read that again. If Obamacare’s “rules were in force” today — the coming rules that will be in force, if they were in force right now — the insurance “premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190% higher.” Now, the headline here is: “[Obamacare] Premium Sticker Shock Could Fuel Foes” They’re saying that this study is gonna fuel opposition to Obamacare. And the final paragraphs of the story tell us why the Politico wrote this thing in the first place. What this is, what The Politico story is, is really an effort to head off any criticism about the premiums for young people tripling.

What we’re told here is: We need to looked at the big picture. Older people won’t have to pay as much, never mind that in the article they note that on average premium for individual policies for young, healthy people and the small businesses that employ them would jump 169%. But costs would fall for older people. The point of this story is that you shouldn’t complain, and they’re worried that this could cause “opposition.” But you shouldn’t oppose it. It’s an effort to head off any criticism. I don’t care where you look, folks…

If you’re young with a bare-bones policy, or if you’re a family, the health insurance costs are going to skyrocket like you can’t imagine. Without question, next to your house or maybe your car, it’ll be the most expensive thing in your life. In this case, it’s a fine if you don’t have insurance. So whether you have insurance or not, the federal government is gonna be collecting thousands of additional dollars that you, at present, are not paying. Everybody was told this about Obamacare before it was signed into law. Everybody was told all these things before the election last year. I don’t know how many listened. Obviously people didn’t listen, didn’t believe it or what have you.

But there’s no avoiding this.

There’s no avoiding paying thousands of dollars that you are not at present paying, once this thing is fully implemented in a couple of years.


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