The Same as MA Healthcare Premiums, the ACA Premiums are too Costly . . .
by Run75441
The Same as MA Healthcare Premiums, the ACA Premiums are too Costly . . .
Chicken Little, Courtesy of “EW.Com Entertainment Weekly”
I have listened to many stating the MA subsidies do not go far enough in alleviating the costs of healthcare for a family not covered by an Employer Subsidized Healthcare plan. Even with my pointing out the subsidies in the ACA exceed that of the MA plan, there still has been quite a bit of doubt.
Maggie Mahar at the resurrected Health Beat Blog http://www.healthbeatblog.com/2012/07/what-will-the-supreme-courts-decision-mean-for-the-november-election-part-1/ pointed to a new Kaiser Family Foundation subsidy calculator in her article as well as other informative points; “What Will the Supreme Court Decision Mean In November?” The ACA Premium Calculator is found here: Healthcare Reform Subsidy Calculator.
Using the KFF Calculator, a person can calculate what they will pay in premiums under the ACA in 2014. Further on down this post, there is a short discussion of the Mandate and a link to another KFF site to determine what the mandated penalty might be per year for an individual and a family. The last chart by “The Incidental Economist” touches upon the relative size of the Mandate in comparison to taxes historically. As a mandated penalty, Obamacare is a middle of the pack tax.
With the KFF calculator, assuming we are discussing Median Household Income, and making an addition assumption Household Median Income increases from the ~$51,000 in 2011 to ~$55,000 in 2013, this is what a family of 4 might pay in 2014:
– Income (family of 4) $55,000 (235% of Poverty)
– Policyholder Age: 45
– ESI: None Available
– Regional Cost Factor: Median
– Unsubsidized Healthcare Premium: $14,425
– Government Tax Credit: $10,110
– Out of Pocket Premium: $4,125
– 2014 Maximum Out of Pocket Expenses: $6,250
Mandate/Tax Penalty is huge? And what if an individual does not buy insurance from the state insurance exchanges; the individual would pay a Mandate Penalty in 2014 of $95/adult and $47.50 per child (or 1% of income, whichever is greater). In 2016, the mandate would be $695/adult and 50% for children (or 2.5% of income, whichever is greater). http://healthreform.kff.org/the-basics/Requirement-to-buy-coverage-flowchart.aspx “The Requirement to Buy Healthcare Coverage” For those who wish to argue Mandate versus Tax, please remember all laws are open to interpretation which does not change the initial intent of the Act passed by Congress.
ACA is the Biggest Tax Ever? It does not even come close to the tax Truman passed to cover WWII costs or even the Reagan Tax Increases of 1982. http://theincidentaleconomist.com/wordpress/obamacare-is-the-biggest-tax-increase-in-history-if-you-ignore-history/ Incidental Economist “Obamacare is the Biggest Tax Ever, If You Ignore History”
Austin Frakt, The Incidental Economist,Obamacare is the biggest tax increase in history … if you ignore history
Maybe the sky is not falling with SCOTUS declaring the ACA is constitutional?
As I understand it, the subsidy will be applied through the exchange so won’t be taxable, but is the premium paid a tax credit or just a deduction that would never apply being below 7.5%?
So here is the thing about just how expensive or in expensive the purchase is.
$4125 is 8% of the $55K income. I doubt a family of 4 can just cough up 8% of their income without it effecting some other spending events. $343.75/month. There goes the discretionary purchase.
$6250 is 11%! $520.83/month.
Oh, really, $4000 income increse in 2 years. Oh please. Have they not been following the trends?
We through around millions and billions and trillions so easily that we have lost perspective as just how much $343.75 per month is to a family of 4. It is not chump change.
Not addressed is how we are going to turn the savings within the system into wages for the masses such that they might actually get the projected $4000 increase in income. Considering our track record of this new millenium of 80+% and recently 93% of all income gains going to the top 1% should we expect anything different? NO!
Daniel:
And if I used 2011 $51,000? What would you say then???? I took the worst extreme to answer your question about how much does the ACA give in subsidies. Nobody is discussing turning the savings into income. All I did was attempt to make the income in 2011 relevent in 2014.
In any case, the ACA is doing more with healthcare than what “you” have in MA. Dan and I had a nice conversation over burgers while I was out there.
I’m not saying the ACA is not doing more. I’m saying it still is costly at the level you have presented.
Maybe I’m wrong, but I just don’t see many people at $51K family of 4having a spare $344/month such that it will not effect what ever they are already spending their income on. I see nothing in the policies of late that suggest such families (or individuals) will be receiving additional wages to offset this cost. I see nothing in the policies of late that suggest the projected savings from the ACA will result in wage increases to the masses such that this new additional cost is offset.
BTW run,
I’m not in MA. I’m in RI.
Also, to be clear: I realize no one is talking about turning the savings into wages. That is my point. We should be talking about where the savings are going to end up. Of course to talk about such would mean we actually have to face the income inequality we have.
Instead, the national conversation just ends with “we’ll save”. And wait for the trickle down? What?
I’m not trying to pick a fight, I’m not in disagreement that the ACA is doing more. I’m trying to do as I have asked since this economy went to hell and posted: Can we please broaden the discussion now?
Daniel:
I know Dan got a nice rebate and well in excess of $500 because of the ACA. Ask him . . . The other savings come from Medicare driving the cost downs in programs.
By the way, I am sitting at a airport hotel in Providence after completing my business in Canton and Stoughton. Leaving tomorrow.
Daniel, the die was cast with the rejection of any other compromise with healthcare insurance. It is just the way it is and we have Blue Dogs and the Senator from Aetna to thank for this policy. I am of the belief it will evolve into something else.
Lord:
The answer on the tax credit for the ACA:
“The credit can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums.” Moreover “The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit.” http://www.healthbeatblog.com/2012/07/the-supreme-courts-decision-buys-time-more-americans-will-have-a-chance-to-learn-what-reform-means/#comment-14945
I was concerned also as to how it would be paid out because of the low incomes many people make which would make it impossible to pay out unless the credit could be given to the insurance company.