Opting Out of Obamacare for 2019

verykenn

New Member
3
New forum member here.

I've just updated my info at CoveredCA (Obamacare in California). My income estimate for 2019 is a hair above the Obamacare cutoff. I'm self-employed. And income should continue to rise. So I did some number crunching to review.

Now thinking of opting out of health insurance entirely for a few years! See attached file.

I'm strong and healthy. No family history of disease. Grandmother passed away at age 98 — only by accident (many years ago). Father still strong at 92. Mother similar. Both still active. I eat right, exercise, don't smoke or drink. Most important is that, now at age 55, I'm as adult and responsible as ever. Risks are low for me.

Financially, health insurance doesn't make sense to me. I've always been properly insured for everything. But now I can't pay over 7k a year for unnecessary health insurance. Might be better to invest it. Ten years of compounding returns can do wonders.

Seem reasonable? Look at the outrageous cost increases. Advice? You can't scare me with "cost of unexpected accident" scenario.

What else am I missing?

People like me are squeezed out — and only because of a slightly higher income.
outrageous_premiums.jpg
 
There are lower cost options available in California for people who enjoy good health.

Aliera Healthcare Sharing Ministry (exempt from Obamacare mandate)
IHC Fixed Benefit Health Plans
Accident Only Major Medical (up to age 59)
Bridge Major Medical Plan (ages 60+)

Aliera does offer short-term interim coverage in CA 30-364 days. They are not yet 100% sure if they can continue this in 2019. My guess is that they will use the "we're not insurance, we're a sharing ministry" to get around the new law (SB 910).

Information available on my site: www.davefluker.com
 
You're an entrepreneur. Entrepreneurs are risk takers. You have already made up your mind. You will know in 10-15 years if it was the right choice.

In regard to the investing philosophy, it has been my experience that when one is operating at marginal income levels there will usually be a girl, a house, an appliance, a cavity, a car, a trip, a business (ie life) that will compete for, and often win over, investment opportunities.

It has again been my experience that 0.05% compounded for 10 years in an IRA does not give you much additional help for the retirement home.

If you can't afford to spend the 7K on health insurance, I would suggest you not try to delude us or yourself by saying you will invest that money.

At age 55 I was unexpectedly diagnosed with cancer.
 
There are lower cost options available in California for people who enjoy good health.

Aliera Healthcare Sharing Ministry (exempt from Obamacare mandate)
IHC Fixed Benefit Health Plans
Accident Only Major Medical (up to age 59)
Bridge Major Medical Plan (ages 60+)
Thank you! Good to know that there are other options. I may very well sign up at your site. But curious — how's the performance of those companies in actual claims? That's the real purpose of insurance. Otherwise it makes even less sense (more risk) to go with placebo premium payments.

You're an entrepreneur. Entrepreneurs are risk takers. You have already made up your mind. You will know in 10-15 years if it was the right choice.
Thank you. Funny! Although not really advice or helpful insight, you're offering the usual scare tactic but with some color and flavor. Your assumptions, however, are wrong as follows:

In regard to the investing philosophy, it has been my experience that when one is operating at marginal income levels there will usually be a girl, a house, an appliance, a cavity, a car, a trip, a business (ie life) that will compete for, and often win over, investment opportunities.
Not marginal income for me. But, of course not very wealthy either. Unless you yourself are self-employed (entrepreneur), you don't know what deductibles get your high gross income down to the AGI that qualifies. Also, being divorced and settled with my "habits" I'm pretty sure I got my life in order.

It has again been my experience that 0.05% compounded for 10 years in an IRA does not give you much additional help for the retirement home.
Funny ROI figure. Sorry you can't find good investments. You have horrible experience! By the way, I already own my home for life. The only next step is hospice many decades off, and that's another story.

If you can't afford to spend the 7K on health insurance, I would suggest you not try to delude us or yourself by saying you will invest that money.
Now you sound like an insurance agent sorely missing out on your potential commission! Wasting 7k every year, which has proven to increase dramatically every year, is in fact the core argument here -- of the flaws of Obamacare, of health insurance in general, of healthcare costs, etc. You're the one who seems deluding yourself by blindly payment any amount. Or wanting others to.

At age 55 I was unexpectedly diagnosed with cancer.
I would normally say "sorry to hear", but for you, too bad. Cancer sucks. Keep praying.

Hsa that puppy and now your 4k under the threshold .Problem solved....
The thing is, I'm already, and have always, leveraged an HSA. All these rising premiums are already within the lowest benefit, highest deductible, catastrophic-only coverages! That's the outrage.

Again, in text format, here's what I've paid annually:
2011 $1196
2012 $1391
2013 $1735
--- Obamacare starts ---
2014 $546
2015 $1475
2016 $1694
2017 $1380
2018 $ unknown until filing my tax return
2019 $7376

That last jump is the outrage.
 
With ACA, as your income rises, your premiums rise and your coverage drops; as you already know.

The hard part for most people at or near 400% of the Federal Poverty Limit is controlling income. It's the new game with ACA for those people. If you can make adjustments to get your income under 400%, you will be fine.

For those who have little or no control of income(w2 or live up to/beyond their means), the law really hits hard.

Depending if you own a business, consider solo401k, HSAs, buying equipment for business, etc to get the MAGI lower. The potential draw back here is you have to have enough cash leftover at the end of the year with the business to fund all of those accounts. Too many people who are self employed have allowed their lifestyle to rise to their incomes.
 
Now you sound like an insurance agent ( speaking of Lost Dollar ) sorely missing out on your potential commission! Wasting 7k every year, which has proven to increase dramatically every year, is in fact the core argument here -- of the flaws of Obamacare, of health insurance in general, of healthcare costs, etc. You're the one who seems deluding yourself by blindly payment any amount. Or wanting others to.

Ha - Lost Dollar is a consumer hanging out in an Insurance Agent forum for some reason. Lonely man he must be . . .
 
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