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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsKids of the Working Poor to Remain Uninsured Under "Health Care Reform"
Looks like the working poor just got screwed again. A portion of the new law which was supposed to limit the out of pocket for a family's employer sponsored insurance to less that 9.5% (a huge chunk if you are skating on the edge of poverty) is now being interpreted by the IRS as limiting the family's out of pocket to 9.5% of the income for the worker's insurance only. This is a big win/win for both health insurers (who like to insure workers, because, hey, they are healthy enough to work, so there can't be much wrong with them) and employers (who want their employees to get well as fast as possible so they can get back to work). However, it means that if your employer offers family coverage that will eat up 20% of your paycheck and you think you can't live off 80% of what you used to bring home, the government is not going to help your spouse or kids get insurance. In some cases, it will mean that the kids will no longer be eligible for SCHIP--meaning that the new law is costing them insurance.
The IRS has graciously decided not to charge the children of the working poor a penalty for being unable to afford insurance. Aw, how sweet of them.
At the risk of offending administration supporters, I smell a big, fat carrot/rat. As in health care is still being used as a carrot to get voters to the polls. The working poor (whose kids will be unable to get check ups, get asthma treatment etc.) will be told "It isn't our fault. Our hands are tied. Congress has to fix this loophole in the law. But the Republican House won't."
Which begs the question, if the IRS can unilaterally decide not to tax the kids who can not afford insurance, why can't the IRS decide that the 9.5% was supposed to cover both workers and their kids?
30 million people will remain uninsured in 2016---and many of them will be children. Stop playing politics with the health of our kids! Declare a national healthcare emergency, open Medicare up to all children. Then stand back and watch how quickly the privates drop their rates for coverage of children.
http://www.nytimes.com/2013/01/31/us/politics/irs-to-base-insurance-affordability-on-single-coverage.html?ref=health
Mnemosyne
(21,363 posts)rhett o rick
(55,981 posts)associated with this bill (unless there is a time period involved) to state his interpretation.
JaneyVee
(19,877 posts)A single person would be $45,000.
Demo_Chris
(6,234 posts)antigop
(12,778 posts)ProSense
(116,464 posts)it likely needs to be clarified.
Fact Sheet on Proposed Affordable Care Act Regulations
http://www.democraticunderground.com/10022291387
Still, the NY Times article and other reports appear to be making incomplete assumptions
Under the I.R.S. rule, such costs would be considered affordable for a family making $35,000 a year, even though the family would have to spend 12 percent of its income for full coverage under the employers plan.
Is this a single-income family? If this is based on two incomes, what would prevent either parent from covering both kids (assuming neither parent earns more than $26,000)?
The Medicaid subsidies are up to 400 percent of FPL (about $90,000 for a family of four), and a family of three qualifies for full Medicaid up to $26,344.
http://www.democraticunderground.com/10022159929
The assumptions about children are also wrong:
Who qualifies for CHIP?
Every state operates a CHIP, although most states have unique names for their programs like Child Health Plus (New York), Healthy Families (California), and Hoosier Healthwise (Indiana). In several states, CHIP and Medicaid are combined into one program.
Here are some CHIP basics:
- Basic eligibility for CHIP: Children up to age 19 in families with incomes up to $45,000 per year (for a family of four) are likely to be eligible for coverage. In many states, children in families with higher incomes can also qualify.
- Eligibility and pregnancy: Pregnant women may be eligible for CHIP. Coverage for expectant mothers generally includes lab testing and labor and delivery costs, and at least 60 days of care after delivery.
- Citizenship and immigration status: CHIP covers U.S. citizens and certain legal immigrants. States have the option of covering children and pregnant women who are lawfully residing in the United States. Undocumented immigrants arent eligible for CHIP.
http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Childrens-Health-Insurance-Program-CHIP/Childrens-Health-Insurance-Program-CHIP.html
Also, what would prevent the other family members (spouse and children) from securing health care on the exchange?
LisaLynne
(14,554 posts)annabanana
(52,791 posts)Get your Rep to join him!
Demo_Chris
(6,234 posts)kenny blankenship
(15,689 posts)According to the IRS regs published yesterday.