If a married couple, both 62, in Hermon need health insurance, the lowest monthly premium is $1,288, or $15,456 per year. The median household income in Hermon for ages 45 to 64 is $67,384. This median or middle class couple would pay 22.9 percent of their income. Is this premium affordable?
This couple likely could not and probably would not buy health insurance. But what about the tax penalty under the federal health care law? Wouldn’t it force the couple to make the purchase?
No, because of a little known and never talked about federal rule. This rule states that if the premium for the lowest cost plan is 8 percent or more of the household income, no penalty tax would be imposed. This couple will not be penalized