New IRS rules and penalties defined in health care bill

Additional items found in the healthcare bill can be seen in an updated article titled: Whitehouse asks public to report healthcare “disinformation”

Should the health care bill pass, a special section has been dedicated for your IRS requirements and penalties. These IRS rules are set in place to verify that you uphold your individual responsibility of coverage for health insurance.

Section 401 of the Health Care Bill is titled: Tax on individuals without acceptable health care coverage

According to the health care bill, the IRS code will be changed.

Under the new bill, everyone has an “individual responsibility” to secure health insurance.

Should you not have “acceptable” health care coverage at any time during the year a tax will be imposed on you.

Should you not have health coverage for a portion of the year – you will pay a tax penalty of the same ratio.

The tax imposed shall not be greater than the annual national average of an “acceptable” policy which will be determined by the Secretary, in coordination with the Health Choices Commissioner.

Failure to provide coverage for more than one individual will result in tax penalty based on “family coverage” rates as opposed to “self-only coverage.”

Interestingly, members of Congress are curiously exempt from the government-run health care option, keeping their existing health plans and services on Capitol Hill. 
 

The health care bill is over 1,000 pages. Should you wish to scan the bill to see how it will personally affect you it can be seen here:

HR 3200

 In part (quoted from text of bill):

 (c) Exceptions.–

“(1) Dependents.–Subsection (a) shall not apply to any individual for any taxable year if a deduction is allowable under section 151 with respect to such individual to another taxpayer for any taxable year beginning in the same calendar year as such taxable year.

`(2) Nonresident aliens.–Subsection (a) shall not apply to any individual who is a nonresident alien.

“(3) Individuals residing outside united states.–Any qualified individual (as defined in section 911(d)) (and any qualifying child residing with such individual) shall be treated for purposes of this section as covered by acceptable coverage during the period described in subparagraph (A) or (B) of section 911(d)(1), whichever is applicable.

“(4) Individuals residing in possessions of the united states.–Any individual who is a bona fide resident of any possession of the United States (as determined under section 937(a)) for any taxable year (and any qualifying child residing with such individual) shall be treated for purposes of this section as covered by acceptable coverage during such taxable year.

“(5) Religious conscience exemption.–

“(A) In general.–Subsection (a) shall not apply to any individual (and any qualifying child residing with such individual) for any period if such individual has in effect an exemption which certifies that such individual is a member of a recognized religious sect or division thereof described in section 1402(g)(1) and an adherent of established tenets or teachings of such sect or division as described in such section.

“(B) Exemption.–An application for the exemption described in subparagraph (A) shall be filed with the Secretary at such time and in such form and manner as the Secretary may prescribe. Any such exemption granted by the Secretary shall be effective for such period as the Secretary determines appropriate.

“(d) Acceptable Coverage Requirement.–

“(1) In general.–The requirements of this subsection are met with respect to any individual for any period if such individual (and each qualifying child of such individual) is covered by acceptable coverage at all times during such period.

“(2) Acceptable coverage.–For purposes of this section, the term `acceptable coverage’ means any of the following:

“(A) Qualified health benefits plan coverage.– Coverage under a qualified health benefits plan (as defined in section 100(c) of the America’s Affordable Health Choices Act of 2009).

“(B) Grandfathered health insurance coverage; coverage under grandfathered employment-based health plan.–Coverage under a grandfathered health insurance coverage (as defined in subsection (a) of section 102 of the America’s Affordable Health Choices Act of 2009) or under a current employment-based health plan (within the meaning of subsection (b) of such section).

“(C) Medicare.–Coverage under part A of title XVIII of the Social Security Act.

“(D) Medicaid.–Coverage for medical assistance under title XIX of the Social Security Act.

“(E) Members of the armed forces and dependents (including tricare).–Coverage under chapter 55 of title 10, United States Code, including similar coverage furnished under section 1781 of title 38 of such Code.

“(F) VA.–Coverage under the veteran’s health care program under chapter 17 of title 38, United States Code, but only if the coverage for the individual involved is determined by the Secretary in coordination with the Health Choices Commissioner to be not less than the level specified by the Secretary of the Treasury, in coordination with the Secretary of Veteran’s Affairs and the Health Choices Commissioner, based on the individual’s priority for services as provided under section 1705(a) of such title.

“(G) Other coverage.–Such other health benefits coverage as the Secretary, in coordination with the Health Choices Commissioner, recognizes for purposes of this subsection.

Another articles of interest:

Why you should listen to his prime time speech

Healthcare for all Americans – the “fine print”

Legislation for those who vote FOR the bill to drop their federal insurance and use the publicly offered health care insurance

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2 Responses to New IRS rules and penalties defined in health care bill

  1. Alexis says:

    Hiya!. Thanks a bunch for the blog. I’ve been digging around looking some info up for shool, but there is so much out there. Google lead me here – good for you i suppose! Keep up the good work. I will be popping back over in a few days to see if there is any more info.

  2. Elliot says:

    Just wanted to chime in on your statement regarding “Individuals residing outside united states”. This is intended to cover US citizens living in another country overseas. Without it, they would be required to carry US insurance and pay into a system they would never use.

    That said, if you want to be exempt from the mandate, get yourself a residence visa in a foreign country :)

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