IRS now comes for Covered CA folks

IRS now comes for Covered CA folks

Seventh sealThe Grim Reaper — the IRS — comes for everybody in the end. Even if you get what was supposed to be “free” or at least “subsidized” medical insurance under Covered California, our state’s implementation of the Affordable Care Act, or Obamacare. According to the Contra Costa Times:

More than a million Californians benefitted from federally subsidized health insurance in 2014 through the nation’s health care law. But now the law is about to give many of them a migraine. 

It’s tax season, and for the first time Obamacare is showing up on tax forms. And it’s leading to confusion and angst over new rules and their impact on taxpayers’ pocketbooks. 

That’s because taxpayers must now reconcile the subsidy they received with the income they estimated they would earn last year. In addition, people who ignored the Affordable Care Act’s requirement to obtain health insurance in 2014 now face a financial penalty levied by the Internal Revenue Service — unless they qualify for an exemption.

Meanwhile, rates continue to rise for many under the “Affordable” Care Act. CBS News — not a conservative site — reported:

a number of low-priced Obamacare plans will raise their rates in 2015, making those options less affordable. On top of that, penalties for failing to secure a health-insurance plan will rise steeply next year, which could take a big bite out of some families’ pocketbooks.

“The penalty is meant to incentivize people to get coverage,” said senior analyst Laura Adams of InsuranceQuotes.com. “This year, I think a lot of people are going to be in for a shock”….

The financial penalty for skipping out on health coverage will more than triple to $325 per person in 2015, or 2 percent of income, depending on whichever is higher. Children will be fined at half the adult rate, or $162.50 for those under 18 years old.

That’s right. The Grim Reaper even comes for kids.

 

3 comments

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  1. Barbara Duck
    Barbara Duck 20 January, 2015, 14:41

    Insurance polices are changing quite frequently as most of the insurance companies have hired groves of quants. Actuaries still used but put it this way you get the quant portion of the model for the shot and the actuary model for the long.

    With incorporating the quant values on the short term now they can bring into the model the impact of policy changes on their stock..such a deal right. All you have to do is look at the classifieds to see the armies of quants hired.

    http://ducknetweb.blogspot.com/2014/10/data-scientistsquants-in-health.html

    Not all but most of the major insurers are also involved with some good size stock buy back programs and well, policy increases, something has to give in here to help finance the buy backs and the dividends. Pay attention here as this inflates the stock price and makes the CEOs richer.

    http://ducknetweb.blogspot.com/2014/12/insurance-carrier-stock-buy-backs.html

    So in the meantime, the IRS comes and heard their budget may be cut so how well with this work with reconciling? Watch this 60 minute piece here and see how easy it is to file a fake income tax return as they don’t even match your name and social security number, a big problem the IRS is working on and why medical record theft is so big.

    http://ducknetweb.blogspot.com/2014/09/one-more-reason-to-license-data.html

    Reply this comment
  2. Donkey
    Donkey 21 January, 2015, 10:03

    Obamacare was a tax the middle-class scheme from the start, an attempt to steal what little a citizen had left over from working all year. Now the politicians and insurance companies can count on forced government enforcement on the little people to ensure their profits.
    Americans have become slaves to the state in the last eight years. 🙂

    Reply this comment
  3. Ulysses Uhaul
    Ulysses Uhaul 21 January, 2015, 22:43

    Mandate not working.

    11 million on Medical….no copays or huge deductibles. Why Covered Calif even with subsidy?

    Any thoughts?

    Reply this comment

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