The Internal Revenue Service issued a report Wednesday in which it estimated that under Obamacare, the least expensive health insurance plan available to a family in 2016 would cost $20,000 annually according to CNSNews.com.
Under the Patient Protection and Affordable Care Act all U.S. citizens are required to have health insurance, either through their employer or by purchasing it directly from the government. Individuals who don’t have it by 2016 face a penalty amounting to either 2.5 percent of a person’s taxable income or approximately $2,000 per family, depending on their income.
The IRS’s $20,000 per family assumption applies to a family of four or five accepting the bronze plan, which of the four types of healthcare plans offered by the government is the most affordable and has the fewest benefits.
The other three types of health insurance plans available under Obamacare are the silver, gold, and platinum plans.
In its Wednesday report, the IRS provided several hypothetical examples illustrating the “penalties” Americans would face if they did not have insurance. The report continues to use the term “penalty” as opposed to “tax” despite the U.S. Supreme Court’s ruling last year that found those in violation of the Obamacare mandate were required to pay a “tax.”