The IRS estimates that the cheapest Obamacare plan for an average family of five will cost $20,000.
In its Obamacare regulations the agency released on Wednesday, the IRS laid out the rules in determining how much of a tax penalty Americans who do not buy health insurance under the law will pay.
“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the IRS said.
Under the Obamacare law, there will be Platinum, Gold, Silver, and Bronze Obamacare plans, with Bronze being the cheapest. Americans who do not have health insurance and do not qualify for a government program will be subject to a tax penalty under Obamacare.
The IRS used an example of a family of five with a household income of $120,000 as the basis for its calculation. In the example, none of the family members have health insurance, or what the IRS describes as “minimal essential coverage.” For the national bronze plan, which would be the cheapest plan available, the “shared responsibility” payment imposed on this family will be the lesser of a tax penalty of $2,4o0 a month or $20,000 a year.