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Friday, November 8, 2013

How to figure the Obamacare subsidy



http://kff.org/interactive/subsidy-calculator/

Figure your own subsidy...

I did some doodling. Decided to check out a non smoking single parent living in mid Chciago making $50,000 a year with two kids.

Health Insurance premium in 2014 (for a silver plan, before tax credit):
$4,512 per year
You could receive a government tax credit subsidy of up to:
$1,146 per year
(which covers 25% of the overall premium)
Amount you pay for the premium:
$3,365 per year
(which equals 6.73% of your household income and covers 75% of the overall premium)











So the parent pays about $280 amonth. Okay. Now, what are the co pays???

Your out-of-pocket maximum for a Silver plan (not including the premium) can be no more than $10,400. Whether you reach this maximum level will depend on the amount of health care services you use. Currently, about one in four people use no health care services in any given year.
You are guaranteed access to a Silver plan with an actuarial value of 73%. This means that for all enrollees in a typical population, the plan will pay for 73% of expenses in total for covered benefits, with enrollees responsible for the rest. If you choose to enroll in a Bronze plan, the actuarial value will be 60%, meaning your out-of-pocket costs when you use services will likely be higher. Regardless of which level of coverage you choose, deductibles and copayments will vary from plan to plan, and out-of-pocket costs will depend on your health care expenses. Preventive services will be covered with no cost sharing required.
So the co-pays and premiums are more than 20% of the parent's income.

Plus, note this:

"This means that for all enrollees in a typical population, the plan will pay for 73% of expenses in total for covered benefits, with enrollees responsible for the rest. "

If the youngsters don't sign up, then the prices in 2015 are gonna jump.

Such a bargain.

Problem is the Low Information people think it is free.

Sometimes people get what they deserve.

"Unlimited tolerance must lead to the disappearance of tolerance. If we extend unlimited tolerance even to those who are intolerant, if we are not prepared to defend a tolerant society against the onslaught of the intolerant, then the tolerant will be destroyed, and tolerance with them." - Karl Popper

“It’s the presumption that Obama knows how all these industries ought to be operating better than people who have spent their lives in those industries, and a general cockiness going back to before he was president, and the fact that he has no experience whatever in managing anything. Only someone who has never had the responsibility for managing anything could believe he could manage just about everything.” - Thomas Sowell in Reason Magazine