PA Health Insurance too expensive for Individuals purchasing themselves

Unfortunately, the new "uninsured" are those who make $1 more than 400% of the FPL.

Let's say you have family of 5 who get a subsidy of $1700/month. Making $1 more than 400% FPL for a family of 5, would cause one to lose the $1700/month is subsidies.
  1. Make $1 more than 400% FPL - pay back all your subsidy $20,400; sorry, but you are worse off for making that $1 to $20,399 dollars more...
  2. Make $20,400 more than 400% FPL - congrats for all that extra work, you just broke even!
  3. Make $20,401 more than 400% FPL - you are starting to get ahead!!
Not an lot of incentive to make more income, but a lot more incentive to make sure you make under 400% FPL.

But you have to pay taxes on that $20,400 so it's really more like $30k of useless extra income...
 
Unfortunately, the new "uninsured" are those who make $1 more than 400% of the FPL.

Let's say you have family of 5 who get a subsidy of $1700/month. Making $1 more than 400% FPL for a family of 5, would cause one to lose the $1700/month is subsidies.
  1. Make $1 more than 400% FPL - pay back all your subsidy $20,400; sorry, but you are worse off for making that $1 to $20,399 dollars more...
  2. Make $20,400 more than 400% FPL - congrats for all that extra work, you just broke even!
  3. Make $20,401 more than 400% FPL - you are starting to get ahead!!
Not an lot of incentive to make more income, but a lot more incentive to make sure you make under 400% FPL.

Your scenario is where being a small business owner comes with welcome flexibility when it comes to configuring personal income. I have clients "worked with" their accountants to ensure that they get a hefty subsidy.

I'm not sure if Tax-Cuts/Tax-Reform will eliminate most of the deductions we rely on. Hope not!
 
True. However with most of the methods I hear people using to get their taxes down, most are 1 time hits. Something that cannot be relied on year after year. Here are my thoughts on what a small business owner could do:
  • If S corp - have a solo 401k, hire wife and have double contributions (employer + employee)x2....you need to trust your sign. other.
  • Buy a heavy truck for business
  • Buy new equipment (computers, etc)
  • 1099 your kids - make sure they do actual work
  • If you require monthly supplies, but several months extra near the end of the year.

HSA contributions on personal income if you have a HDHP.

I had one guy (not a client) tell me he was going to 1099 his retired father $50k. Have the Dad pay his monthly bills out of the $50k less any taxes the father would owe on the extra income. Not sure how compliant any of that is, but it's what I have heard.

Curious what others have heard or seen.
 
Your scenario is where being a small business owner comes with welcome flexibility when it comes to configuring personal income. I have clients "worked with" their accountants to ensure that they get a hefty subsidy.

I'm not sure if Tax-Cuts/Tax-Reform will eliminate most of the deductions we rely on. Hope not!

I have multi-millionaires getting subsidies worth 40,000 next year. That is the system that was set up, why shouldn't they take advantage of it.
 
When I first got started in individual health plans, my first full year, I sold two plans that were over $1000 (family of two) per month. Both cases it was a situation where someone else was paying for it, so the member got the nicest plan they could.

In 2012, my average premium was $132/month/person. I sold a lot of hsa plans.

Looking at my book now, my average premium is $617.49/month/person...times have changed
 
I remember when a family's premium went over $100, and we thought the market had reached a brick wall. We said, "Families can't afford this!". (For years we had sold plans where the deductible was $100 to $250, and the premium was under $100 for a family.)

Of course, I'm old. That was in the late 70's. That brought the HMO concept in the 80's that introduced the famous copay plan. Then rates really began to increase.
 
If the Republicans don't fix this soon they will all be defeated in 2018. Its absolutely disgraceful. My daughter and son in law need to use the exchange because they recently relocated and can't get on an employer group plan yet. Bronze plan is about $1500 per month with a $14,000 deductible. Insanity. So they have to come out of pocket $32,000 before coverage kicks in.
 
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