The next round of Vermont Heath Connect (VHC) problems are about to hit Vermonters. This time they have to do with taxes and the IRS. At the weekly Republican caucus meeting at the State House this Tuesday, Representatives Doug Gage (R-Rutland) and Ann Donahue (R-Northfield) briefed legislators on what to expect. If you bought insurance through VHC, you may owe the IRS a chunk of change.
Issue number one: some of the calculators the VHC navigators were using were incorrect. Since what you pay for your insurance under VHC is calculated based on income, you could end up owing more (plus penalties), or owing less based on the mistake — all through no fault of your own.
Issue number two: Some people may be kicked off the program due to underpayment (again, due to no fault of their own).
Complicating matters further, the IRS says it only has the capacity to field roughly 50% of the total customer service calls they expect to get from citizens trying to deal with these problems.
Watch the video for a fuller explanation.
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Happy day! The idiots strike again with their well meaning half baked inept attempts to do good.
I’m beginning to feel like the AFLAC duck listening to Yogi Berra. If the Supreme Court declared it a Tax, how can the IRS tax a Tax? I know I missed something, somewhere. From my own point of view, if the health care is considered a tax and not the government coercing you into buying a product, then why can’t the cost of the ‘healthcare tax’ be deducted under Misc. Taxes on your Schedule A?