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This EO from Trump is going to quietly start ending the ACA

Posted by on Feb. 15, 2017 at 2:10 PM
  • 18 Replies

In what looks to be the first real blow to Obamacare before its inevitable death, the IRS is following President Donald Trump’s directive to ease up on the Affordable Care Act’s requirement that everyone have health care or pay a penalty.

The ACA requires most people to have health coverage, and to indicate whether they did by filling out line 61 of their 1040 forms when they file taxes. Following the president’s executive order last month which directed federal agencies to exercise authority and discretion available to them to reduce potential burden,” the IRS said in a statement to Yahoo Finance, it will allow electronic and paper tax returns to be accepted for processing in cases where a taxpayer doesn’t indicate their coverage status.

Since Obamacare’s implementation, individual taxpayers had to indicate whether they had health insurance, an exemption from coverage or made a “shared responsibility payment” (the fee for going without minimum health coverage) — in line 61 of Form 1040. An IRS spokesperson said that in recent years, tax returns that were “silent” in that regard were still processed. Last year, though, the agency initially put in place system changes for the 2016 tax year that would reject tax returns during processing when the taxpayer didn’t provide that information.

View photos
IRS Form 1040 for 2016. Line 61: “Health care: individual responsibility”

But following the president’s executive order, the IRS will now process returns without the coverage information, so they are “not systemically rejected, allowing them to be processed and minimizing burden on taxpayers, including those expecting a refund,” the IRS said.

It’s still law

The ACA law is still in effect, the IRS emphasized, until it’s changed by Congress, “and taxpayers remain required to follow the law and pay what they may owe‎.” Indeed, there’s still an obligation for taxpayers to report the months they were covered, months exempt and months with a shared responsibility payment, says Tara Straw, senior policy analyst at the Center on Budget and Policy Priorities.

Under the ACA those who are uninsured and do not meet one of the exemptions must pay a penalty. For 2016 it’s the higher of either: $695 per adult plus $347.50 per child, or 2.5% of household income.

The IRS said that when it has a question about a particular tax return, it might follow up with taxpayers after the filing process is done, which is how it says the agency has handled such questions in previous years.

What might be a question than the mandate is how tax preparers and tax software will handle this change, says Karen Pollitz, senior fellow at the Kaiser Family Foundation. Last year the IRS advised tax pros that starting with 2016 returns that would be electronically filed, line 61 could not be blank; new software coding meant that if the line wasn’t filled in, the return would not get processed. But now the agency is changing it back – so returns are still going to be processed as before, says Pollitz.


by on Feb. 15, 2017 at 2:10 PM
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Replies (1-10):
BluesPagan2.0
by IWantTacos on Feb. 15, 2017 at 2:12 PM
Many families will suffer. Many more will go bankrupt or die.
Inailedit
by on Feb. 15, 2017 at 2:23 PM

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.


BluesPagan2.0
by IWantTacos on Feb. 15, 2017 at 2:23 PM
3 moms liked this
Single payer. That's the answer.

Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.

Inailedit
by on Feb. 15, 2017 at 2:28 PM

No, for many of us that have lived with it, it is not a good thing to have here.

Quoting BluesPagan2.0: Single payer. That's the answer.
Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.



Sisteract
by Whoopie on Feb. 15, 2017 at 2:46 PM
3 moms liked this

Then health care costs will sharply RISE for everyone- even those with private HCI.

The healthy offset the costs for the sick, that's how hc works in Murica.

We need single payer-there are many choices available.

BluesPagan2.0
by IWantTacos on Feb. 15, 2017 at 2:53 PM
1 mom liked this
I have yet to hear Canadians complain about their system.

Quoting Inailedit:

No, for many of us that have lived with it, it is not a good thing to have here.

Quoting BluesPagan2.0: Single payer. That's the answer.

Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.

Inailedit
by on Feb. 15, 2017 at 3:03 PM

And I have heard them complain. I have also heard them say great things about it.

I spent my childhood living with socialized medicine. That truly works for those that can afford private insurance in addition to the taxes they pay. Without the private insurance, the wait times and quality of doctors are often subpar and/or neglectful.

Quoting BluesPagan2.0: I have yet to hear Canadians complain about their system.
Quoting Inailedit:

No, for many of us that have lived with it, it is not a good thing to have here.

Quoting BluesPagan2.0: Single payer. That's the answer.
Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.




jessilin0113
by Ruby Member on Feb. 15, 2017 at 3:17 PM
2 moms liked this
People not signing up for coverage is why this fell apart in the first place. Single payer is the way to go. No system is perfect but single payer is closer to it that what we had before. This should not be a for-profit enterprise.
PJMM
by Member on Feb. 15, 2017 at 3:25 PM
Pop over to MC. You will. Personally idt we can have a single payer system on the tax base we have now.

Quoting BluesPagan2.0: I have yet to hear Canadians complain about their system.

Quoting Inailedit:

No, for many of us that have lived with it, it is not a good thing to have here.

Quoting BluesPagan2.0: Single payer. That's the answer.

Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.

PinkButterfly66
by Platinum Member on Feb. 15, 2017 at 3:29 PM

or open up the federal health care plans available to federal employees to everyone and let ALL of us pay that rate.  The Federal Government has plans by BC/BS or Anthem, Mail Handlers, USHealthCare and many others.  And it won't be Medicare, so it will keep the insurance companies in business. It will be BETTER coverage and in many cases cheaper than what everyone is paying now.  I currently pay $1,000 a month for health insurance because my husband works for a small business and it will only cover his insurance.  

Quoting BluesPagan2.0: Single payer. That's the answer.
Quoting Inailedit:

If you can't afford insurance, then you can't afford the fine to the government.

This is a good thing.

Quoting BluesPagan2.0: Many families will suffer. Many more will go bankrupt or die.



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