Navigation Links
IRS Caps Fines on Uninsured Americans at $12K for Family of 5

HealthDay Reporter

FRIDAY, July 25, 2014 (HealthDay News) -- U.S. taxpayers who go without health insurance this year will face fines of up to $2,448 per individual or $12,240 for a family of five, the Internal Revenue Service says.

The Obama administration on Thursday announced an upper limit on the federal tax penalties that some Americans will owe for failing to have health insurance.

The IRS cap is based on the monthly national average premium for a bronze-level health plan.

The Affordable Care Act, or Obamacare as some people call it, requires most people to have health insurance this year or pay a penalty when they file their 2014 tax returns.

The penalty, or "individual shared responsibility payment," comes in two forms: a flat amount or a percentage of adjusted gross income per household -- whichever is greater.

Penalties for this year start at $95 per adult and $47.50 for a child and rise to 1 percent of household income. In 2016, they jump to $695 per adult, and half of that per child, or 2.5 percent of household income.

The cap described by the IRS will only benefit people making more than about a quarter of a million dollars a year, the Associated Press reported. People who earn less than that would still pay fines of as much as 1 percent of their annual income, the AP said.

Only about 4 million people are expected to pay the penalties -- a fraction of the estimated 30 million who will still be uninsured in 2016, the Congressional Budget Office said in June. Experts believe many uninsured Americans will qualify for exemptions from the federal tax penalties.

The Obamacare sign-up period ended this spring, although people can still purchase coverage for this year under special circumstances, such as a move, divorce or birth of a child.

The next open enrollment period begins Nov. 15. Coverage purchased during that time won't take effect until 2015.

Separately, federal health officials on Thursday said some 6.8 million families are due to get a refund from their health insurer this summer. The refunds, averaging $80 per family, will be made in the form of a check or premium reduction, according to the U.S. Department of Health & Human Services.

The refunds are the result of a provision in the Affordable Care Act barring insurers from spending more than 20 percent of premium dollars on administration and marketing expenses.

In a press release, U.S. Health and Human Services Secretary Sylvia Burwell said ACA provisions like this one "provide Americans better value for their premium dollars."

In a blog for the National Center for Policy Analysis, a free market think tank, health analyst Greg Scandlen said consumers do not benefit from the rebate provision because insurers can overcharge people and earn interest on that money over the course of a year.

"So consumers in effect are simply giving the insurers an interest-free loan for a year," he wrote.

More information has more about Affordable Care Act coverage.

SOURCES: Internal Revenue Service, Revenue Procedure 2014-46; July 25, 2014, Associated Press; July 25, 2014, news release, U.S. Department of Health & Human Services

Copyright©2014 ScoutNews,LLC.
All rights reserved  

Related medicine news :

1. Study Redefines What a Healthy Vagina Is
2. New Comprehensive Chromosome Screening Program at Pacific Fertility Center Refines Embryo Selection, Improves Pregnancy Rates
3. Serving up San Francisco’s Finest Little Gem, Tanimura & Antle Little Gems™ Sweet Lettuce
4. Story-Telling At Its Finest: Atlanta-Area Agency Frederick Swanston Brings Home the Gold
5. Boulder's Very First Cannabis Dispensary Continues To Provide Colorado With The Finest In Organic Medicine
6. American Medical Association Defines Obesity as a Disease Affecting 90 Million Americans
7. Issue III registry defines best syncope candidates for cardiac pacing
8. AvePoint Redefines Mobility, Allowing Users to Access Content, Trusted Devices, and Locations with AvePoint Perimeter
9. Marsy Beron Looks at How to Avoid the Confines of Labels
10. Is Your Business Prepared to Pay $125,000 in Fines from a Wage and Hour Audit?
11. Save the Date: Bay Area’s Finest Dance Companies to Perform at Second Annual Cancer Benefit
Post Your Comments:
Related Image:
IRS Caps Fines on Uninsured Americans at $12K for Family of 5
(Date:6/25/2016)... ... June 25, 2016 , ... ... recover from injury. Recently, he has implemented orthobiologic procedures as a method for ... is one of the first doctors to perform the treatment. Orthobiologics are substances ...
(Date:6/24/2016)... ... 2016 , ... A recent article published June 14 on E ... goes on to state that individuals are now more comfortable seeking to undergo not ... as calf and cheek reduction. The Los Angeles area medical group, Beverly Hills Physicians ...
(Date:6/24/2016)... ... June 24, 2016 , ... Marcy was in a crisis. Her son James, eight, was ... his family verbally and physically. , “When something upset him, he couldn’t control his emotions,” ... He would throw rocks at my other children and say he was going to kill ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... micro-osteoperforation for accelerated orthodontic treatment. Dr. Cheng has extensive experience with all areas ... , AcceleDent, and accelerated osteogenic orthodontics. , Micro-osteoperforation is a revolutionary adjunct ...
(Date:6/24/2016)... ... June 24, 2016 , ... People across the U.S. are sharpening ... Talker Award, an essay contest in which patients and their families pay tribute to ... at the 2016 National Society of Genetic Counselors (NSGC) Annual Education Conference (AEC) this ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... 23, 2016 Research and Markets ... Market by Type (Organic Chemical (Sugar, Petrochemical, Glycerin), Inorganic ... Coating, Parenteral) - Global Forecast to 2021" report ... The global pharmaceutical excipients market is projected to ... of 6.1% in the forecast period 2016 to 2021. ...
(Date:6/23/2016)... Research and Markets has announced the ... 2016 - Forecast to 2022" report to their offering. ... up to date financial data derived from varied research sources ... with potential impact on the market during the next five ... comprises of sub markets, regional and country level analysis. The ...
(Date:6/23/2016)... 23, 2016 Bracket , a leading clinical ... generation clinical outcomes platform, Bracket eCOA (SM) 6.0, at ... 26 – 30, 2016 in Philadelphia , ... Outcome Assessment product of its kind to fully integrate with ... Bracket eCOA 6.0 is a flexible platform for electronic clinical ...
Breaking Medicine Technology: