IRS: No Obamacare Penalty for Some Niche Government Plans

Thursday, 23 Jan 2014 07:36 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The Obama administration on Thursday said people enrolled in some small, government-sponsored healthcare plans will not face a penalty under Obamacare in 2014, even though their coverage does not meet the healthcare reform law's minimum requirements.

In proposed rules released by the Internal Revenue Service, the administration said narrowly defined government coverage including programs limited to family planning or tuberculosis-related services through Medicaid do not meet minimum essential coverage standards.

Ordinarily, President Barack Obama's Patient Protection and Affordable Care Act would require someone who lacks minimum coverage to pay a penalty.

But the IRS is proposing that individuals in certain plans pay no penalty for failing to have minimum essential healthcare for this year. These individuals may be eligible for a premium tax credit to get healthcare coverage on a state or federal health insurance marketplace, the proposed rules said.

The exemption includes people deemed medically needy due to crippling healthcare costs, enrollees in special Medicaid demonstrations and military personnel enrolled in programs with limited eligibility.

The announcement comes on the heels of an administration decision to offer hardship exemptions to people who had their individual policies canceled last year because they fail to meet Obamacare's standards for minimum coverage. That decision was part of the administration's response to a public outcry that devastated Obama's poll numbers and worried Democratic lawmakers.

But Thursday's proposed rules, which would affect a small but undetermined number of people, have been in the works since at least last August, when the IRS published regulations on the individual mandate.

Obamacare requires most Americans to be enrolled in health coverage by March 31 or pay a 2014 penalty of $95 or 1 percent of annual household income, whichever is higher. The penalty is scheduled to rise in subsequent years. (Reporting by Patrick Temple-West; Editing by Eric Walsh)

© 2014 Thomson/Reuters. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Report: Washington Full of Cell Phone Spying Devices

Thursday, 18 Sep 2014 22:12 PM

The Washington, D.C., area is littered with devices that spy on users' cellphones, and one expert thinks they were plant . . .

Man Kills Daughter, Six Grandchildren in Murder-Suicide

Thursday, 18 Sep 2014 21:43 PM

A 51-year-old Florida man shot dead his daughter and six grandchildren in his home before killing himself on Thursday, a . . .

New Chicago High School Won't Be Named After Obama

Thursday, 18 Sep 2014 21:23 PM

President Barack Obama's adopted hometown has nixed a plan to name a new high school after him. Chicago Mayor Rahm Emanu . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved