United Health Care - Opting Out of Most Exchanges!

[AllenChicago]

Nobody wants to play with Obama:

Obamacare's Health Exchanges Are Customer Free Zones - Forbes

Aren't the subsidies a strict formula based on income and family size? This article says that higher premiums would dictate larger subsidies. If that's the case the $1 Trillion estimate is peanuts compared to what the final cost will be to taxpayers.
ac

 

[taterpeeler]

Damn thing is unraveling before our eyes... Chuckles.... Lest rebrand it to make people like us more... That funny
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Aren't the subsidies a strict formula based on income and family size? This article says that higher premiums would dictate larger subsidies. If that's the case the $1 Trillion estimate is peanuts compared to what the final cost will be to taxpayers.
ac

Yes... But if the premiums far exceed expectations then the % of subsidy will be larger... It's not a set amount it's a percentage that keeps their outlay at the determined income allocation %

 

[AllenChicago]

Damn thing is unraveling before our eyes... Chuckles.... Lest rebrand it to make people like us more... That funny
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Yes... But if the premiums far exceed expectations then the % of subsidy will be larger... It's not a set amount it's a percentage that keeps their outlay at the determined income allocation %

OK.. so if a family has to lay out more than 9.5% of their income (after subsidy) then they get a waiver from having to own insurance? Well then, the Treasury had better fire up the money printing presses and also get their knee-pads ready to go begging the Chinese for more loans that we'll never pay back.

 

[taterpeeler]

OK.. so if a family has to lay out more than 9.5% of their income (after subsidy) then they get a waiver from having to own insurance? Well then, the Treasury had better fire up the money printing presses and also get their knee-pads ready to go begging the Chinese for more loans that we'll never pay back.

with all due respect... I think you are missing how subsidies will be applied and don't understand what it means to be at or below the subsidy line

 

[AllenChicago]

with all due respect... I think you are missing how subsidies will be applied and don't understand what it means to be at or below the subsidy line

Lots of moving parts.. that 4 sure! I guess that's what 2,000+ pages of legislation and hundreds of rules will do to the mind.


Taterpeeler, is there an insurance forum thread that you recommend for quick-study of how the subsidies will work?
-Allen

 

[Yagents]

Aren't the subsidies a strict formula based on income and family size? This article says that higher premiums would dictate larger subsidies. If that's the case the $1 Trillion estimate is peanuts compared to what the final cost will be to taxpayers.
ac

Eligibility for subsidies is based on income.

The ACTUAL subsidy reduces it down to a % of their income.

So, if income dictates that they must not pay more than 9% of their income, the higher the premium, the more cost to the gov't.

Ex: $90,000 AGI means they will pay no more than $8100 for the premium (9%). If premium is $13,100 then the gov pays $5000. If premium is $15,100 then gov pays $7000.

 

[Ann H]

You were close, Allen.

If a person's cost for insurance is more than 8% of their AGI they can go without insurance and not owe the individual mandate penalty.

However, the way subsidies are calculated, the subsidized person pays for their own insurance, up to a cap of 9.5% of family AGI. The govt pays the rest. So, if premiums spike, the cost of providing all those subsidies spikes.

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Here is a link to a very good summary of how the subsidies (tax credits) work. http://www.kff.org/healthreform/upload/7962-02.pdf

 

[AllenChicago]

Bill and Ann, thanks for your responses and clarifications. I suppose what confuses me is how the subsidy amount is dependent on so many factors. I read that there will be regional, cost-of-living (or cost of medical care?) factors taken into consideration too. A resident of San Francisco will get a larger subsidy than someone in Bismarck.

BTW Ann, the Kff.org PDF page comes up blank for me. Maybe the URL has changed a bit, or the page taken down, or my IE10 Beta doesn't like it.

Thanks again to both of you!

-Allen

 

[taterpeeler]

But challenge me if I am wrong but the lower the income the lower the % of your income can be spent on premium.. That means more subsidy dollars.....challenge me I said.. Get u some

 

[Ann H]

You are not wrong, TaterPeeler. Not only will rate-shocked premiums cause higher subsidies, but also (as you said), the lower the income then the lower the % of your income that you must spend on premium. The amount you spend is graded, starting at 2% for those earning 133% of FPL up to 9.5% for those earning 300-400% of FPL.

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BTW Ann, the Kff.org PDF page comes up blank for me.

Sorry, Allen. Try this link, and when the webpage loads, click the link that says "brief" and it will take you to the correct pdf file.

Explaining Health Care Reform: Questions about Health Insurance Subsidies - Kaiser Family Foundation