2014 Subsidy Calculator for Expensive Exchange Policies

[AllenChicago]

Dear Fellow and Lady Colleagues,

I've heard about how people will get paid subsidies to purchase health insurance on the "Exchange" in 2014, but I had NO IDEA that calculating the subsidies involved so many variables. Check out this online Subsidy Calculator:
Health Reform Subsidy Calculator

FAQ regarding the Calculator's Formula(s):
Frequently Asked Questions

I incorrectly thought that people would get a real monthly subsidy to purchase health insurance. As it turns out, they'll merely get a Tax Credit at income tax time? Is that how you all interpret the FAQ section? If so, this means that individuals and families will have to pay out BIG BUCKS for one of the exhange plans for xx months before getting their credit/rebate from the IRS. Right? If so, that won't fly too well. Thank goodness we'll still have the full gamut of normally priced and underwritten health insurance policies to sell outside of the exchange!

-A.C.

 

[CHUMPS FROM OXFORD]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

I thought they don't have to pay for the tax credit. If they do...that helps us.

 

[AllenChicago]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Sure does! Hopefully, it's a rebate that will take many months for the exchange purchaser to recoup from the IRS. And if they owe back taxes, or other $$$ to the government, their premium rebate/credit will be delayed longer and reduced by the outstanding debt. Leave it to our government to take a simple concept and end up screwing the electorate.

 

[VolAgent]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

They'll have to advance it like EIC to make it work. The only problem is, the vast majority of employers will go from sending payments to the IRS to receiving payments from the IRS.

I hope Congress is not stupid enough to try it, way too many things to go wrong there.

 

[stuy119]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

I can't come up with a logical thought to post because I'm laughing so hard right now.

 

[jbage007]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Key thing to look for: Check out the anticipated PREMIUMS.

 

[jiminfla]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Looking at those numbers, for a family of 4 with an income of $60,000, the government will pay $9,300 per year as a subsidy on a $14,245 policy.
That is close to what a Fortune 100 Employer pays for the employee and family in a group plan for a friend of mine.

Why would this Fortune 100 employer continue to pay out $9300 as a benefit when they can pay a small penalty to the government, give my friend a $5,000 per year raise, and not have the hassle of benefits administration?

The company has more money in it's pocket, the employee has almost 100% paid health insurance ($9300 by the government + $5,000 Raise from employer), and the company doesn't have to admin anything!

Everyone benefits except the taxpayer!

 

[somarco]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Jim, you have discovered what many Fortune 500 companies have figured out. Obamacrap assumed those with group health would continue to keep it. If companies give the boot to group health this thing falls like a house of cards . . . as if it needed any extra help . . .

 

[stuy119]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Jim, you have discovered what many Fortune 500 companies have figured out. Obamacrap assumed those with group health would continue to keep it. If companies give the boot to group health this thing falls like a house of cards . . . as if it needed any extra help . . .

And 10 years from now, those of us who are still around will be left to pick up the pieces.

 

[AllenChicago]

Re: 2014 SUBSIDY CALCULATOR for Expensive Exchange Policies.

Looking at those numbers, for a family of 4 with an income of $60,000, the government will pay $9,300 per year as a subsidy on a $14,245 policy.
That is close to what a Fortune 100 Employer pays for the employee and family in a group plan for a friend of mine.

Why would this Fortune 100 employer continue to pay out $9300 as a benefit when they can pay a small penalty to the government, give my friend a $5,000 per year raise, and not have the hassle of benefits administration?

The company has more money in it's pocket, the employee has almost 100% paid health insurance ($9300 by the government + $5,000 Raise from employer), and the company doesn't have to admin anything!

Everyone benefits except the taxpayer!

If the employer gives the employee a $5,000 raise, won't
that make his subsidy tax-credit lower? Looks like a pay
raise lowers the subsidy proportionately. Sucks doesn't it.
-AC