Navigation Links
IRS Caps Fines on Uninsured Americans at $12K for Family of 5
Date:7/28/2014

By
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

HealthCare.gov 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:
*Name:
*Comment:
*Email:
Related Image:
IRS Caps Fines on Uninsured Americans at $12K for Family of 5
(Date:2/5/2016)... ... ... US Sports Camps , official operators of Nike Yoga Camps, announces ... training. ChildLight Yoga Studio is centrally situated in the picturesque New England city of ... founder Lisa Flynn expresses her excitement, “We are thrilled to be partnering with US ...
(Date:2/5/2016)... Texas (PRWEB) , ... February 05, 2016 , ... ... to allow users to search for and donate to Give To Cure’s campaign that ... an app that lets users make and share payments through a smart device. In ...
(Date:2/5/2016)... ... February 05, 2016 , ... Dr. Justin Scott and Dr. ... Annual No Cost Dental Day to individuals in need. The event is scheduled to ... No Cost Dental Day is to provide dental care to community members in need. ...
(Date:2/5/2016)... (PRWEB) , ... February 05, 2016 , ... In sleep, ... form as a dream. A hallmark feature of patients with eating disorders is significant ... The eating disorder behaviors and obsessions are regarded as maladaptive means for coping with ...
(Date:2/5/2016)... ... ... Calls Blacklist has just been updated by mobile app developer Vlad Lee. The ... known bugs within the app. Calls Blacklist allows its users to only have to ... their device’s battery power or memory. It provides a powerful call blocker that is ...
Breaking Medicine News(10 mins):
(Date:2/4/2016)... LONDON , Feb. 4, 2016 ... and competitive market to drive long-term market growth ... very common set of chronic disorders that affect ... disparate in terms of their symptoms and key ... by dysregulation of immune pathways and an inappropriate ...
(Date:2/4/2016)... -- Omnicell, Inc. (NASDAQ: OMCL ), a leading provider of ... announced results for its fiscal year and fourth quarter ... --> GAAP results: Revenue for the fourth quarter ... 4.1% from the third quarter of 2015, and up ... 2014. Revenue for the year ended December 31, 2015 was ...
(Date:2/4/2016)... Feb. 4, 2016  Aethlon Medical, Inc. (Nasdaq: ... biofiltration devices to treat life-threatening diseases, today announced ... ended December 31, 2015. --> ... set forth in our last quarterly call, we ... our long-term objective to establish the Aethlon Hemopurifier® ...
Breaking Medicine Technology: