The US Internal Revenue Service, (IRS) has published their preliminary proposed regulations, relating to the Affordable Care Act, also known as Obama Care which can be accessed here.
The organization is calling for public comments which can be provided until May 2nd 2013 in preparation for the public hearing scheduled for May 29th, 2013 at 10 am. The public hearing will be held in the IRS Auditorium, Internal Revenue Building, 1111 Constitution
Send submissions to: CC:PA:LPD:PR (REG-148500-12), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-148500-12), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically via the Federal Rulemaking Portal at www.regulations.gov (IRS REG-148500-12). The public hearing will be held in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.
Basically the proposed regulations define the percentage that American taxpayers have to pay towards Obama Care and provides nonexempt individuals with a coercive choice. Maintain minimum essential coverage for themselves and any non exempt family members or include an additional payment with the Federal income tax return. Nonexempt individuals must have minimum essential coverage for each month beginning after December 31st 2013. For a family of four their contribution has been calculated as $ 20,000 in 2016.
Employers are already stampeding to cut working hours of their employees so that do not have to provide health care coverage, leaving the burden on American families who have already been devastated by unemployment, and the loss of their home by the fraud and predatory lending practices perpetuated by the mortgage industry.
The proposed IRS regulations do allow for exemptions and they include the following scenarios:
Individuals are exempt for a month which an exchange certifies that the individual is a member of a recognized religious sect or a division thereof and is an adherent of established tenants or teachings of that sect or division.
Section 1402(g)(1) provides an exemption from self-employment tax for members of a qualified religious sect or division thereof. A qualified religious sect or division thereof described in section 1402(g)(1) is a sect or division thereof that the Commissioner of Social Security finds: (1) has established tenets or teachings by reason of which its members and adherents are conscientiously opposed to acceptance of the benefits of any private or public insurance that makes payments in the event of death, disability, old age, or retirement or makes payments toward the cost of, or provides services for, medical care (including the benefits of any insurance system established by the Social Security Act); (2) maintains, and has maintained for a substantial period of time, a practice whereby its members make provision for its dependent members that is reasonable in view of their general Section 5000A(d) and (e) describe individuals who are exempt from making the shared responsibility payment even if they do not have minimum essential coverage for a given month.
Section 5000A(d)(3) provides that an individual is exempt for a month that the
individual is neither a citizen or national of the United States nor an alien lawfully present in the United States.
Section 5000A(d)(4) provides that an individual is exempt for a month that the
individual is incarcerated, except for incarceration pending the disposition of charges.
Section 5000A(e)(1) provides that an individual is exempt for a month for which
the individual lacks access to affordable minimum essential coverage.
Section 5000A(d)(2)(B) provides that an individual is exempt for a month that the
individual is a member of a health care sharing ministry.
The IRS has developed some example scenarios examining the impact of Obama Health Care on a family of four with a proposed income of $ 90,000. For example Taxpayers B and C are married and file a joint return for 2016. B and C have two children, D and E. In November 2015, B is eligible to enroll in self-only coverage under a plan offered by B’s employer for calendar year 2016 at a cost of $5,000 to B. C, D, and E are eligible to enroll in family coverage under the same plan for 2016 at a cost of $20,000 to B. B, C, D, and E’s household income is $90,000.