The PPACA (aka Obamacare) is the gift that keeps on giving:
About 1.8 million households that got financial help for health insurance under President Barack Obama’s law now have issues with their tax returns that could jeopardize their subsidies next year. Administration officials say those taxpayers will have to act quickly.
Consumers who got health care tax credits are required to file tax returns that properly account for them, even if they are unaccustomed to filing because their incomes are low. Unless they follow through, “they will not be able to receive tax credits to help lower the cost of their health insurance for 2016,” Lodes explained.
Treasury officials said 1.8 million households are at risk of losing subsidies for next year, and that number breaks down as follows:
—About 710,000 households that have not filed a 2014 tax return, although they were legally required to account for health insurance tax credits that they received.—Some 360,000 households that got tax credits and requested an extension to file their returns. They have until Oct. 15.
—About 760,000 households that got tax credits and filed their tax returns omitted a new form that is the key to accounting for the subsidies. Called Form 8962, it was new for this year’s tax filing season.
So even if you didn’t make enough money to file, you have to file because of Obamacare or else you don’t get health insurance. Oh, and you will probably owe money because of this.
But wait, there’s more: Blue Shield of California owes $82.8 million in Obamacare rebates:
Health insurance giant Blue Shield of California owes $82.8 million in rebates to consumers and small employers under requirements of the federal health law.
The majority of that money, $61.7 million, will be divvied up among 454,000 individual policyholders who had Blue Shield coverage in 2014. The average rebate is $136.
The remaining rebates of $21.1 million are owed to about 19,000 small employers. Customers will receive their money by the end of next month, according to the San Francisco insurer.
California’s two other big health insurers, Anthem Inc. and Kaiser Permanente, said they won’t have to issue rebate checks this year under the Affordable Care Act.
The refunds are required when insurers fail to spend a minimum of 80% of premiums on medical care for individual and small-business customers.
Blue Shield said it fell short of that mark, spending 76.8% of premiums collected on medical care in both its individual and small employer business last year.
So, if insurance companies don’t spend 80% of what they receive in premiums, they have to give the money back. Sounds like an incentive to get them to spend more money to me. Which, of course, will drive up the cost of health care even more.
Worst. “Law”. Ever.