During the debate over his health care reform proposal, President Barack Obama and his apologists in Congress insisted that it would hold down insurance premiums for American families. But despite these promises, Jonathan Gruber, the architect of the plan, acknowledged that insurance premiums would still rise under ObamaCare.
So it comes as no surprise to see read an IRS report released last week showing that the cheapest health insurance plan under ObamaCare will cost a family $20,000 in 2016:
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.
The IRS’s assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives 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.
While the individual mandate is supposed to ensure that Americans purchase health insurance coverage, a nearly $1,700 per month premium is going to be too much for many families to afford. CNS News notes that the failure to purchase health insurance coverage would result in a $2,085 penalty per family (or 2.5% of taxable income) in 2016.
Like businesses who are dropping coverage to avoid heavy costs, it’s cheaper for Americans to remain uninsured, especially now that ObamaCare has further driven up costs, rather than purchase health insurance coverage.