IRS Closes Escape Route from Obamacare


May 28, 2014
**To receive this commentary directly to your email, click the "subscribe to the Health Freedom eNews" button above.


The Obama administration wants no one to escape Obamacare's wealth redistribution scheme. A new IRS regulation shuts down a major escape route, corrals the unwilling and tries to keep the truth about Obamacare under wraps.

The IRS just ruled that employers cannot reimburse their employees for the cost of health insurance premiums that the employee buys on their own and claim they are complying with the Obamacare employer mandate by doing so. This means employers also cannot send employees to the government exchange, pay for coverage and claim compliance.

The IRS says "employer payment plans" that reimburse employees do not comply with Obamacare because they do not prohibit annual limits on Obamacare's 10 essential health benefits nor do they include the requirement to provide preventive care without cost sharing. Penalties for non-compliance are harsh. If employers reimburse them, the IRS will fine employers $100/day per employee -$36,500 per employee, per year.

Why would the Obama administration do this?

First, the IRS ruling protects the Obamacare wealth redistribution system. Keeping employees corralled in employer-sponsored coverage leaves people trapped in Obamacare's mandates, penalties and pricing, which gives the Obama administration more dollars to redistribute.

For example, Obamacare classifies employer-sponsored coverage as "affordable" ifself-only coverage for the employee is no more than 9.5% of family income. However, if someone does not have coverage through their employer, insurance is not deemed "affordable" if it cost more than 8.0% of their income. The upshot: Obama is counting on individuals with employer-sponsored coverage to pay more into the wealth redistribution scheme than required by others.

Second, the IRS ruling allows the Obama administration to hide the truth about Obamacare. If employers are allowed to send employees to the government exchange:

  • Employees may realize that Exchange coverage is government coverage with "narrow networks" of doctors and hospitals, not private insurance. This could increase national opposition to Obamacare. 
  • Employees will realize these "employer payment plan" dollars are compensation they could receive as cash wages, and they may want the cash instead of the coverage.
  • Employees who qualify for Medicaid will be forced into Medicaid (which is partially funded by state taxpayers), making Obamacare less sustainable and increasing state legislative opposition to the law.

Obamacare is a nationwide wealth redistribution system. After passage, U.S. Senator Max Baucus (D-MT) told the media Obamacare "will have the effect of addressing the mal-distribution of income in America." Their ultimate goal is the largest wealth distribution system of all -- single-payer health care.

What should concerned Americans do? In every way possible, citizens must deprive the system of the cash, enrollment and cooperation it needs to survive. Your donation of just $25 or $50 today will help CCH Freedom fight to keep Obamacare from embedding itself permanently into American medicine. This may mean temporary pain for long-term gain. That's the Obama strategy to single-payer. It should be ours as well - to health freedom.

Telling the Truth about Obamacare,

Twila Brase, RN, PHN
President and Co-founder