Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-18-2013, 12:02 AM   #61
Recycles dryer sheets
check6's Avatar
 
Join Date: Jan 2009
Posts: 383
Quote:
Originally Posted by Mulligan View Post
Now don't be bringing up employer provided insurance, Animorph, or I will have to get back on my soapbox and complain about why the company and worker get the insurance benefit tax free, and I have to pay with after tax dollars!
Perhaps that worker (group) negotiated for a better health insurance plan in lieu of higher wages. Apples to oranges.
__________________

__________________
check6 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-18-2013, 11:07 AM   #62
Dryer sheet wannabe
 
Join Date: Jun 2013
Location: SoCal
Posts: 16
Quote:
Originally Posted by M Paquette View Post
Obscene? Welcome to my life...

Medical Expenses as a Percentage of Gross Income in Retirement:
2012 25.1%
2011 20.2%
2010 27.0%
2009 29.5%

Being retired ain't cheap. MAGI was above 400% of the Federal Poverty Level for 2009-2011. We were under by about $650 for 2012.

Sorry to hear that. The cliff is a little more perverse. At 400% FPL, in your late 50s early 60s, the health coverage premiums alone jump to 26% of your income.

Add in any actual illness that pushes you to the OOPM, and you're looking at 45% of gross income.

Even being under 400%FPL, an actual illness will push you towards 30% as you approach OOPM.

Retirement is cheap, being sick isn't.
__________________

__________________
No_Such_Reality is offline   Reply With Quote
Old 09-19-2013, 05:03 PM   #63
Thinks s/he gets paid by the post
 
Join Date: Apr 2010
Posts: 1,690
I think that the much bigger issue is that the US is well on the way to a spend of 18 percent of GDP on health care with absolutely NO appreciable differences in outcomes to those the rest of the industrialized western countries that that consistently sprend 12 percent.

This will put the US at a competitive disadvantage.

This is a real issue that the politicians seem unwilling to address
__________________
brett is offline   Reply With Quote
Old 09-19-2013, 06:52 PM   #64
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 2,718
Quote:
Originally Posted by No_Such_Reality View Post
Sorry to hear that. The cliff is a little more perverse. At 400% FPL, in your late 50s early 60s, the health coverage premiums alone jump to 26% of your income.

Add in any actual illness that pushes you to the OOPM, and you're looking at 45% of gross income.

Even being under 400%FPL, an actual illness will push you towards 30% as you approach OOPM.

Retirement is cheap, being sick isn't.
Even with the deduction changes then all of the premiums above 10% of AGI would be deductable, (above the 10% limit). Also if you have an LTC policy that can add to the total. So the question would become what other deductions you have, and if enough than at least a part of your premium would be effectivly tax protected. The simple fix is to add the employeer contributions, and the employee contributions where a benefit cost reduction plan is in place back into the gross pay, and allow above a 10% deduction.
__________________
meierlde is offline   Reply With Quote
Old 09-20-2013, 04:06 PM   #65
Dryer sheet wannabe
 
Join Date: Jun 2013
Location: SoCal
Posts: 16
Quote:
Originally Posted by rbmrtn View Post
At that level would the premiums be tax deductible when itemized on schedule A ? I believe the threshold is now 10% for medical . I haven't run the numbers, just thinking if that might lessen the impact ( maybe that was part of 9.5% income cap for subsidy )

And yes the cost of basic medical care is beyond the reach of most working folk with out the aid of insurance.
Unless you're still carrying large interest payment on a mortgage, you'd need $11,900 over the medical base (7.5% in 2012, 10% in 2013)

So a family of four, making $94,200 (400% FPL), would need $21,320 in medical expenses before breaking even against the standard deduction. Or some other combination of other deductions exceeding $11,900 and then more than $9420 in medical expenses.

For someone in the income range in a family of four, the tax rate is 15%. So basically, 15% of the amount over $10000 is what you get back if you've got $11,900 in other deductions. i.e $20K in medical bills with $12,000 of other itemized deductions will get you $1500 back on your taxes.
__________________
No_Such_Reality is offline   Reply With Quote
Old 09-21-2013, 07:51 AM   #66
Confused about dryer sheets
 
Join Date: Jul 2011
Posts: 9
Quote:
Originally Posted by fh2000 View Post
Covered California now includes a calculator with actual provider quotes in my zip code area. I get 4 provider quotes. I am not retired yet, so I will be just watching how this unfolds very closely.
Actually, Covered CA should show about 6 quotes.
But the site is very poorly done.

If you move the mouse over, you will see arrows on the left and right, which you can click, and additional options will show.

It took me a while to figure this out, as I was looking for the Kaiser option which was not showing in the first 4 .
__________________

__________________
madbrain is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 07:09 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.