ObamaCare Fact of the Day
The new insurance subsidies are based on an individual’s (or family’s) most recent tax return. So subsidy levels beginning in January 2014 will be based on reported income for 2012. As might be expected, a family’s circumstances can change significantly during this time lag for a variety of reasons — a change in job, significant raise, divorce, birth, or death, to name just a few.
The health care law established a reconciliation process intended to recapture any subsidy over-payments — but the law capped the amount of such repayments at $250 for individuals and $400 for families.
Source: Chris Jacobs and CongressDaily
Looks like we will need Certified Public Accountants to help us figure out how to get health insurance.
According to the Congress Daily article, “…the program will likely be error-prone and difficult to administer.” This is an understatement! Twenty-eight million people are estimated to purchase coverage in the exchange. All but 6 million — give or take a million — are eligible for subsidies. Presumably, some of the remaining 6 million will erroneously receive subsidies. For the sake of argument, lets assumes that, say, 25 million people will purchase coverage in the Exchange while having to prove how much their family earns. Some will have a portion of their subsidies recaptured when they are wrong. This sounds like it will become a bureaucratic nightmare.
Let me guess: there will be at least 2-5 forms that will be added to everyone’s tax return in order to comply with this silly little regulation.
And while I’m at it, I will wager that the instructions for completing these “little forms” will be at least 35 pages. Most likely 50 to 75.
So, how much more is this going to cost me each year when I have to bring in my CPA to help me figure out what government forms I do and don’t need and what goes on them?