You, Obamacare and the IRS


April 17, 2013


Next year, Obamacare goes viral. And not in a good way. Full-force Obamacare will infect your life like no law in the past, present, or likely the future. You'll feel the ill effects on your employment, your income, your insurance, your doctor, your health, your family, your choices and your medical and personal privacy.
IRS intrusions are coming. The IRS has spent $488 million to implement Obamacare, with a whopping $405 million of it on information technology (IT) for tracking and enforcement of the insurance mandate. The IRS can be overly aggressive. It is currently facing a class action lawsuit for the theft of 60 million medical records from 10 million patients by 15 IRS agents. Despite having a search warrant solely for financial data, the agents seized the medical records, which included records of several California state judges.
Now Obama wants 1,000 new IRS implementation workers, plus an additional $350 million to implement the law. This includes $305 million for IT systems that will issue federal subsidies in Obama's government exchanges. In addition, he seeks $44.4 million and 283 more IRS workers to educate taxpayers about the complexities of the law (Politico Pro, 4/10/13), including:
  • The IRS will use the tax form you just filed on Monday as a yardstick to determine whether you can receive a taxpayer-funded federal subsidy for Obamacare coverage - available only through state-based Obamacare exchanges.
  • You will be penalized for any month you are not insured, starting January 1, 2014.
  • If you get a federal premium subsidy, you'll have to report to the IRS if anything changes your income status (e.g. you get married, get a job, get a raise, etc.).
  • If you get a federal subsidy but your income goes up during the year, you may have to pay it back to the IRS. This is called a "clawback."
  • You'll have to report your insurance status to the IRS for compliance with the tax-penalty mandate.
  • If you have employer-sponsored coverage, the W-2 you submit to the IRS will include a code "DD" in Box 12.
  • Insurers will send you a special form to submit to the IRS with your tax return.
  • If you're exempt under one of the nine exemptions from the insurance mandate (4) or from the tax-penalty (5), you'll have to prove it to the IRS or pay a tax-penalty.
Initial tremors have begun. Three years ago, President Obama and the Democrat-controlled Congress moved heaven and earth to shift the tectonic plates of freedom that have been our sure foundation. The American Medical Association and labor unions hailed their courage. But now, reality is setting in and the Richter scale is beginning to jump wildly. The AMA is warning of a physician shortage. And just  yesterday, a labor union called for repeal of Obamacare. Sen. Max Baucus, who expressed elation after the 2010 vote, now predicts a "huge train wreck."
Unlike the tepid sequester, Obamacare will actually hurt people -- and their pocketbooks. Lots of people. Lots of pocketbooks.

Sticker shock is imminent. At the AHIP Exchange Conference I attended in March, one speaker said, "We've never had a program that imposed this level of cost on low income people." Federal premium subsidies for Obamacare (I call it "Medicaid for the middle class") were supposed to reduce the financial pain, but the cost of coverage may still feel quite unaffordable, and states are scrambling to try to figure out how to help people pay for it. Furthermore, subsidies  are only available through state-based ACA exchanges and 33 states have wisely refused to set up or fund these federal takeover centers.

This national IT superstructure of networked state-funded and federally-funded Exchanges
may not function. Already the Small Business version has been delayed one year, leaving businesses with higher costs and no insurance choices.  At the AHIP Exchange conference I attended in March, Christine Ferguson, director of Rhode Island's exchange admitted,
"None of us are sleeping. None of us are comfortable. None of us are in a good place...None of you would undertake something in this time frame."
Democrats are getting angry. U.S. Senators have lashed out at HHS Secretary Sebelius in committee hearings. She boldly claims the government Exchanges will be ready by October 1, 2013, but few believe her. Liberal Time magazine reporter Joe Klein writes, "we are now seeing weekly examples of this Administration's inability to govern... Obamacare will fail if he doesn't start paying more attention to the details of implementation...Sooner or later, the Democrats may come to understand that making it run efficiently is the prerequisite for maintaining power."

So take heart. Don't give up. The fact that Obamacare tremors and political turmoil are beginning to spread nationwide means the Obama administration can no longer pull the wool over anyone's eyes with fuzzy promises of  "hope and change." Reality is setting in.

Here's something good to remember: we are Americans. In the face of disaster, we fearlessly jump in and fix things. We will fix Obamacare by repealing it. We will go even further. We will fix health care by cutting out the regulators, bureaucrats, mandates, and myriad other third-party profiteers and overseers -- and replacing them with mission-minded, market-based, patient-centric, compassionate care solutions, such as CCHF's
"5C" health care solution.

But until then, we must "fix" Obamacare by helping it to fail -- rapidly. Its Achilles' heel is the Exchange, its implementation center.  Without sufficient enrollees, it is financially unsustainable. Enrollment is scheduled to begin in 5½ months. Refuse to use the Exchange, and help others to do the same.

Donate generously today to support our efforts to fuel the resistance needed to win this great cause!

Faithfully working with you for freedom,

Twila Brase, RN, PHN
President and Co-founder