{"id":13304,"date":"2013-02-05T19:41:45","date_gmt":"2013-02-05T19:41:45","guid":{"rendered":""},"modified":"2013-02-05T19:41:45","modified_gmt":"2013-02-05T19:41:45","slug":"obamacare_fines_fees_and_expenses_explained","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2013\/02\/05\/obamacare_fines_fees_and_expenses_explained\/","title":{"rendered":"Obamacare Fines, Fees and Expenses Explained"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: To Austin, Texas, and Natalie. Natalie, welcome to the EIB Network. Great to have you here. Hi.<\/p>\n

CALLER: Hi, Rush. Thank you for calling. I\u2019m a second-generation listener. My question was something you had touched on yesterday that board me all night and I couldn\u2019t really sleep. You said that it was gonna cost a family of four roughly $20,000 a year for Obamacare. My husband and I have four children, so that would cost us about $24,000 a year if I did the math right. If my husband only makes $25,000 a year, what are we supposed to do? Does that mean my children can\u2019t afford health insurance because we can\u2019t afford it?<\/p>\n

RUSH: No, you pay the fine.<\/p>\n

CALLER: So, we —<\/p>\n

<\/p>\n

RUSH: That\u2019s not next year. These are IRS numbers, and it sounded incredible to me, too. It works out to about $4,000 per family member. It\u2019s $16,000 to $20,000 a year for a family of five, and I think after a certain number of years (I think it\u2019s by 2020, after this thing fully implements), it gets going for a while, and the fine mechanism has evened out with the coverage. But the IRS said that is the average cost of the lowest plan, Natalie. That\u2019s the bronze plan. What you are supposed to do at that point is to say, “To hell with getting your own insurance and get on the government plan.” That\u2019s the purpose of that is to drive you out of the private sector health insurance market, including any insurance provided by you or your husband\u2019s employer.<\/p>\n

CALLER: Well, we were on TRiCare until my husband was medically discharged and then when that happened in March, we lost all our insurance. So I don\u2019t have insurance, my husband gets his care through the VA, and my kids unfortunately right now have to be on Medicaid to get their checkups and stuff.<\/p>\n

RUSH: Well, you\u2019re covered, then. The 20 grand is for people that currently get their insurance via their employer. That\u2019s what it\u2019s gonna end up costing the employer or you, and the whole purpose of that high expense is to drive you out of that market and force you into a state exchange or a government-run program of some kind. It\u2019s designed to propel the government as the place you have to end up going to get insurance.<\/p>\n

CALLER: So if you don\u2019t want that, then you can just pay the fine?<\/p>\n

RUSH: Well, but see, if you make less than 200% of the poverty rate, you get a “subsidy,” meaning your neighbors will help you pay for it. So at your income level, you are gonna be subsidized out the wazoo because your income level is beyond or beneath 200% of the poverty rate. So it won\u2019t cost you that much money. It\u2019ll cost the rest of us.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Ladies and gentlemen, a slight correction, and I must admit the correction I need to make here is just a mistake and somewhat understandable. When the IRS put these numbers out that the cheapest health care coverage for a family of four would be $20,000 a year, my reaction to that was, “That can\u2019t be possible, because nobody can afford that. That simply cannot be possible,” and that\u2019s the cheapest. There\u2019s bronze, silver, gold, and then platinum premium. But $20,000 is the cheapest. The mistake I made is in telling our previous caller that that\u2019s the cost that Obamacare will require private sector insurance companies to charge.<\/p>\n

<\/p>\n

My mistake is, it\u2019s not the private sector price. That\u2019s the Obamacare price. That is the cost of insurance. The bronze plan is 20 grand for a family of five. For a family of four, that would be $16,000. It\u2019s basically $4,000 a person, so a family five is 20 grand. That\u2019s the Obamacare price. After Obamacare is fully implemented, that\u2019s what it\u2019s going to cost. Now, obviously people can\u2019t pay that, so there are exemptions. In the first couple\/three years, there\u2019s a fine option. You can pay a penalty, and that starts at $2400. You don\u2019t have insurance, but you\u2019re also legal. One way or the other, Obamacare is going to cost you.<\/p>\n

You\u2019re either going to buy insurance and pay what it costs or you\u2019re gonna pay the fine. Now, the first couple\/three years of Obamacare, after full implementation, the fine relative to the cost of the insurance is cheap. That $2400 instead of $16,000 is cheap. But you still have to come up with the $2400. There\u2019s gonna be a line item on your tax return for it. That\u2019s why there are 16,500 new IRS agents as part of Obamacare. They are there to make sure that you either have insurance and can prove it, or that you\u2019ve paid the fine. If you can\u2019t pay the fine and you\u2019re working, they will deduct it. It\u2019ll be an additional deduction from your paycheck.<\/p>\n

Just like FICA and your income tax deduction, it will be a new deduction. It\u2019s not as though you\u2019ll have to write a check for $2400. They\u2019ll just take it from what you earn over the course of 12 months if that\u2019s what you choose. You\u2019ll have the choice to pay the fine or buy the policy. Now, after a short number of years the fine gets larger than the policy. The purpose of the fine is to obliterate private sector insurance. If people don\u2019t buy insurance \u2019cause it\u2019s so expensive and instead pay the fine, then the private sector health insurance companies are losing customers, obviously. And the more customers they lose, the greater the odds they\u2019re gonna go out of business.<\/p>\n

But after a while, that $20,000 is the Obamacare price, it is not the private sector price, and that\u2019s the correction I need to make. Now, if your annual income is less than 200% of the poverty rate… Figure 80 grand. If your annual income is less than $80,000, then you will get a subsidy. I don\u2019t know how much, but it\u2019s calculated. You will get a subsidy on the $20,000 that you owe, and you\u2019ll have to pay the balance. There no way around this, folks. I don\u2019t think there\u2019s any stopping Obamacare now. It\u2019s done. The states are doing what they can when it comes to the exchanges and things like that.<\/p>\n

<\/p>\n

But I have a story here. This is from The Politico. “The federal health care law…” Brace yourself. “The federal health care law could nearly triple premiums for some young and healthy men, according to a forthcoming survey of insurers that singles out a group that might become a major public opinion battleground in the Obamacare wars. The survey, fielded by the conservative American Action Forum and made available to Politico, found that if the law\u2019s insurance rules were in force, the premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190% higher” than what it is today.<\/p>\n

Let me read that again. If Obamacare\u2019s “rules were in force” today — the coming rules that will be in force, if they were in force right now — the insurance “premium for a relatively bare-bones policy for a 27-year-old male nonsmoker on the individual market would be nearly 190% higher.” Now, the headline here is: “[Obamacare] Premium Sticker Shock Could Fuel Foes” They\u2019re saying that this study is gonna fuel opposition to Obamacare. And the final paragraphs of the story tell us why the Politico wrote this thing in the first place. What this is, what The Politico story is, is really an effort to head off any criticism about the premiums for young people tripling.<\/p>\n

What we\u2019re told here is: We need to looked at the big picture. Older people won\u2019t have to pay as much, never mind that in the article they note that on average premium for individual policies for young, healthy people and the small businesses that employ them would jump 169%. But costs would fall for older people. The point of this story is that you shouldn\u2019t complain, and they\u2019re worried that this could cause “opposition.” But you shouldn\u2019t oppose it. It\u2019s an effort to head off any criticism. I don\u2019t care where you look, folks…<\/p>\n

If you\u2019re young with a bare-bones policy, or if you\u2019re a family, the health insurance costs are going to skyrocket like you can\u2019t imagine. Without question, next to your house or maybe your car, it\u2019ll be the most expensive thing in your life. In this case, it\u2019s a fine if you don\u2019t have insurance. So whether you have insurance or not, the federal government is gonna be collecting thousands of additional dollars that you, at present, are not paying. Everybody was told this about Obamacare before it was signed into law. Everybody was told all these things before the election last year. I don\u2019t know how many listened. Obviously people didn\u2019t listen, didn\u2019t believe it or what have you.<\/p>\n

But there\u2019s no avoiding this.<\/p>\n

There\u2019s no avoiding paying thousands of dollars that you are not at present paying, once this thing is fully implemented in a couple of years. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: It\u2019s amazing how expensive health care is once it\u2019s free. I\u2019m telling you, people have no idea what\u2019s headed their way. Even people who are moderately informed about this really don\u2019t have any idea what is headed their way. Here\u2019s Donna in Southern California. Great to have you on the EIB Network. Hello.<\/p>\n

CALLER: Hi there, Rush.<\/p>\n

RUSH: Hi.<\/p>\n

<\/p>\n

CALLER: You know, Rush, I\u2019ve been in meetings for probably the last month with business owners out here in Southern California. Most of them are nonunion companies, all Republicans who are business owners, and everybody is looking at each other with doe-in-the-headlight eyes because we really believed that Barack Obama was not going to get reelected so this Obamacare was gonna be repealed and we would not have to deal with it in our businesses. So now, by 2014, it has to be implemented in your business. If you have employees that have worked under 40 hours a week, you\u2019ve never had to give them insurance. Now, of course, you do, and it\u2019s not gonna happen. So that implosion that you talked about earlier is coming.<\/p>\n

RUSH: Wait, wait, wait, wait. What do you mean, “It\u2019s not gonna happen”?<\/p>\n

CALLER: Well, how could it happen when businesses can\u2019t afford it? We can\u2019t afford to insure these people.<\/p>\n

RUSH: You are supposed to forgo your profit.<\/p>\n

CALLER: Well, right and then whatever we do is gonna go to the consumer who no longer will be able to afford the product.<\/p>\n

RUSH: If you forgo your profit, maybe he can.<\/p>\n

CALLER: Well, right, but we\u2019re not gonna forgo any profit. We are already have. We\u2019re existing now without it. Any long-term business has been in business just for the employee\u2019s sake, not because there\u2019s any great profit.<\/p>\n

RUSH: Well, that\u2019s the reason you\u2019re there in the first place. You exist to provide health care and jobs for the community. That\u2019s it. You\u2019re not supposed to make a profit, and that\u2019s what you\u2019re gonna learn. That\u2019s what Obama\u2019s here to teach everybody, and you\u2019re gonna learn that.<\/p>\n

CALLER: Well, you said it. You just said earlier: People have no idea how bad this is going to really get, and it really is. I mean, it\u2019s gonna be companies closing across this nation. That\u2019s why the economy is shrinking, is because companies are actually closing. (chuckling) So it\u2019s bad.<\/p>\n

RUSH: They\u2019re closing in advance of Obamacare implementation. That\u2019s true.<\/p>\n

CALLER: Absolutely.<\/p>\n

<\/p>\n

RUSH: But, see, you need to be more like Amazon. You need to sit there and lose money, your stock price goes up, and everybody loves you<\/a>.<\/p>\n

CALLER: Right. Well, that\u2019s not how it works. That\u2019s not the reality. That\u2019s not the real world. Meanwhile, we have the GOP fighting one another — you know, Karl Rove and then the conservatives — instead of all of us coming together.<\/p>\n

RUSH: I know. I don\u2019t understand. Look, for all of this desire Republicans have to wipe out conservatives, where is the same desire to wipe out the Democrats? How do these people get elected? They run against Democrats in their elections. How the hell do they get elected if they don\u2019t fight and oppose \u2019em? Look, you\u2019re exactly right. You\u2019ve hit the nail on the head on practically everything. I appreciate it. In fact, Donna, I want you to hang on. Bring her back up. Would you like a new iPad?<\/p>\n

CALLER: Yes, I would. (chuckling)<\/p>\n

RUSH: All right. All right, I\u2019m gonna have some in not too long. I\u2019ll have one of these great 128-gigabyte storage ones. You may not know what that means, but it\u2019s the best one. It\u2019s all you need to know. Hang on so Mr. Snerdley can get your address. We\u2019ll give you this for when you close your business and you\u2019ll have something to do. It\u2019s fun, you\u2019ll love the thing, and you\u2019ll find a way to be productive on it, too.<\/p>\n

CALLER: Thank you, Rush! God bless.<\/p>\n

RUSH: Thank you, Donna, very much.<\/p>\n","protected":false},"excerpt":{"rendered":"

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