RUSH: Glenn in Waterloo, Iowa. Hi. Great to have you on the program, sir. Hello.
CALLER: Hi, Rush. Long-time listener, first-time caller.
RUSH: Thank you, sir.
CALLER: Hey, I was wondering. I was watching the Norah O'Donnell show on CBS This Morning, and the boy king had an interview last night before the game. He was saying how much health care was costing so much money. I thought he fixed that.
RUSH: Yeah. Well -- he-he-he-he -- another misdirection. The real news on that, I don't know if you heard this or not. The IRS put out a news release late last week that the average family will see their health premiums cost $20,000 a year. Yep. An average family, health premiums will cost $20,000 a year.
RUSH: The story was from Cybercast News Service. It was on January 31st, and here are the dirty details: "In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year." That's just three years from now. "The IRS's assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.
"The examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze plan. 'The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,' the regulation says," or you pay the fine. Now, you can say five into 20 is $4,000 per family member, but remember: Obama said his plan would result in premiums dropping by $2500. Obama is now saying -- or did say -- that the deficit and our spending problem was largely due to health care, and Obamacare is going to fix that.
It's $20,000 per family from the IRS.
Now, as we said last week, Obamacare lets insurance companies charge older people rates that are three times higher because of their age. And, of course, smokers have to pay more. I assume the overweight are gonna have to pay more, the obese. This, by the way, is the cheapest family plan, and this is the IRS. This is the bronze plan. The silver and gold plans are gonna cost a lot more. Now, in the early stages, remember, you can pay the fine. It's gonna be much, much less than this. By design. Remember that?
The fine is much less than this. The point is the objective is to get people out of the private health insurance market because Obama and the Democrats want to close that down. So if the cheapest health care plan three years from now, for a family of five, is 20 grand, and the fine, let's say, is... I'm gonna take a stab in the dark because I don't know exactly. But the fine is nowhere near that the first couple or three years. It's $3,000 bucks, let's say. I mean, it's a big, big difference, whatever the number is.
Young people especially are gonna say, "What? I don't need to spend $20,000. Hell, I'll pay the fine and then I'm covered. If I pay the fine and I need some emergency coverage, I'll go to the emergency room and it'll be subsidized. I'm taken care of." Then after a while, it's not too long, the fines are more expensive than the health insurance. And by that time, so many people have opted out of buying insurance 'cause it's so expensive, that the private sector health insurance industry basically will wither away on the fine.
And the only option people are gonna have is to go to the exchanges set up by the federal government, run by the states. Ergo, single-payer health care. I mean, the ultimate objective of Obamacare is single-payer, government-run health care. But they can't do that overnight. People wouldn't accept it. So this plan -- and it's always been part of Obamacare -- has been to raise prices significantly but have the fine much cheaper so that people opt for that. When you're opting for the fine, you're not buying insurance.
That's not good for insurance companies, right, if you're not buying policies? And the more people who opt out of buying policies, the less business there is, obviously, for private sector health insurance. The objective is to finally wipe 'em out, have 'em close up. So the only place people will eventually have to go for insurance is the government.
Here's the fine. The IRS calculates that a family earning $120,000 per year that did not buy insurance would need to pay a penalty of $2,400 in 2016. I knew it was a significant difference. Now, what are you going to do if you're faced with this option. On the one hand you must do one of two things. You must buy health insurance. If you don't have a family, figure $4,000 for you individually, ballpark, $4,000 a person. A family of four, 16 to 20 grand. A family of five, 20 grand. Or, $2,400 fine, what are you gonna do? If you're young, you'll pay the fine. You're not gonna get sick anyway, you're thinking. You're certainly not gonna have a catastrophic illness.
So you'll roll the dice that you won't be in a big-time accident, you'll pay the fine. You're legal, IRS is off your case. That's a huge difference. Take it for a family of four. Let's say that they're faced with $16,000 to $20,000 a year health insurance. Who has that for health insurance? Nobody's got that. If the employer doesn't cover it or a portion of it or all of it and you gotta come up with some of it, you still are not gonna be able to afford that, but the fine, $2,400 taken out of your tax, I'll do that. It's obvious $2,400 is a much more attractive option than $20,000, particularly if you're young.
The fine, from the article, the IRS calculates again $120,000 per year, family earning that much will pay a penalty -- they don't say tax, by the way -- penalty of $2,400 in 2016. The right way to look at this is, one way or the other, the government is going to get your money. The government wants your money. They're calculating that you won't buy health insurance at those prices when you're young, but they're still gonna get their money. What Obamacare is, in part, because it's many things, but it is, among other things, a way for the government to get money from the uninsured. Stop and think of it that way. If you're uninsured, you work someplace but you're not full time so you don't have a plan, or you do work full time but your boss is a creep like most bosses are -- ahem -- and your boss doesn't give you your health care in toto. You still have to pay the fine. If you end up being uninsured, you still have to pay.
Right now, prior to Obamacare, if you were uninsured, you didn't pay anything. You went to the emergency room, you finagled, you did whatever you had to do, everything was fine. It was an option not to pay health insurance. And maybe you didn't pay insurance, if you went to the doctor, you just paid for it. No longer. Now everybody is going to pay. The thing is, how many people think Obamacare's free? How many people think that Obamacare is this massive new entitlement that isn't gonna cost them anything. Somebody else is gonna be paying for it. Yet under Obamacare even the uninsured are gonna be paying a minimum of $2,400 a year. And that $2,400 does not buy you insurance. It's a penalty for not having it.
It's just a new tax, $2,400, and you do not get insurance coverage for that. It's a penalty for not having it. Family of four or five starting in 2016, $20,000 for the low-end plan. What's the solution? First thing, get rid of the kids. If that doesn't wipe it all out, then get rid of the spouse. That's the fastest way to get these costs down. But who's gonna do that? Who's gonna get rid of the kids? Nobody's gonna get rid of the kids. Who's gonna get rid of the spouse just for this? Well, we'll have to wait and see. (laughing)