View Poll Results: Will you try to get the ACA subsidy?
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Yes, the thousands saved would be worth the reduced budget
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80 |
42.55% |
No, the threshold is too low for the planned budget
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23 |
12.23% |
Undecided, still looking for more info. on how the subsidies would work
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43 |
22.87% |
Don't plan to use ACA plan, have alternative health care
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42 |
22.34% |
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Poll: Who's going to try to get ACA subsidies by staying under the threshold?
04-01-2013, 11:33 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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Poll: Who's going to try to get ACA subsidies by staying under the threshold?
So the ACA cliff has garnered a lot of discussion.
Since a lot of people here are able to manage their ER income by deciding how much to withdraw, it seems there would be the temptation to save thousands by keeping income below the threshold.
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04-01-2013, 11:51 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Posts: 1,788
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What are the thresholds? Sorry, I haven't been paying attention to the discussion.
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04-01-2013, 11:52 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Quote:
Originally Posted by ER Eddie
What are the thresholds? Sorry, I haven't been paying attention to the discussion.
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http://www.early-retirement.org/foru...ml#post1303138
__________________
Numbers is hard
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04-01-2013, 12:00 PM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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I don't understand the PPACA very well. Sure, most people can say that, but I really mean it!
Anyway, in 2014 Medicare will be my primary insurer, and group employee/retiree insurance will be my secondary insurer. So, very tentatively speaking, I don't think Obamacare and the subsidies were meant for people in my situation.
Even if they were, I have no plans to try to reduce my AGI somehow to pull it below the $44,680 threshold (for a single person) in order to qualify for a subsidy in 2014. To be honest, I don't see how I could do that.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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04-01-2013, 12:02 PM
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#5
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gone traveling
Join Date: Mar 2007
Posts: 559
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Quote:
Originally Posted by W2R
I don't understand the PPACA very well. Sure, most people can say that, but I really mean it!
Anyway, in 2014 Medicare will be my primary insurer, and group employee/retiree insurance will be my secondary insurer. So, very tentatively speaking, I don't think Obamacare and the subsidies were meant for people in my situation.
Even if they were, I have no plans to try to reduce my AGI somehow to pull it below the $44,680 threshold (for a single person) in order to qualify for a subsidy in 2014. To be honest, I don't see how I could do that.
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if your on medicare-forget about ACA. does not apply
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04-01-2013, 12:07 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Posts: 1,788
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Quote:
Originally Posted by REWahoo
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Thanks.
I don't expect my income to be above 25K or so, so it looks like I'll qualify for the subsidy. That's good news, though I don't know that I'll use the ACA. I'll have retiree healthcare through my employer, so it'll be a matter of comparing the two options.
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04-01-2013, 12:09 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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Quote:
Originally Posted by gerrym51
if your on medicare-forget about ACA. does not apply
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Oh good! That is what I thought or at least hoped. Those tables only go to age 64 anyway, and in 2014 I will be 65-66 years old. So, I voted " Don't plan to use ACA plan, have alternative health care"
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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04-01-2013, 12:22 PM
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#8
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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Assuming there will be no difference in the quality of care received by people who are subsidized (and it looks like there won't be), then yes, I will do my best to keep my income below the threshold.
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04-01-2013, 12:30 PM
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#9
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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Quote:
Originally Posted by W2R
Even if they were, I have no plans to try to reduce my AGI somehow to pull it below the $44,680 threshold (for a single person) in order to qualify for a subsidy in 2014. To be honest, I don't see how I could do that.
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Just curious. When you say you do not think you can do that, is it because you need more than $ 44680 for your annual expense, or you cannot do that to qualify for the subsidy because of philosophical reason?
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04-01-2013, 12:52 PM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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It is interesting how things have changed over time. When I was planning to retire I planned to do Roth conversions and stay within the 15% tax bracket. Given HSA contributions, home mortgage interest, charitable contributions, etc. that would have been limiting my income to ~$96k a year.
Now with ACA, I'll be reducing my income to 400% FPL (~$62k a year). If I stayed at ~$96k a year the additional $34k would cost me ~$23k (~$5k in federal income tax @ 15% + ~$15k in lost Obamacare subsidy + ~$1k in state income tax + ~$2k in lost state property tax relief) an effective cost of 68%!!
Now I'll probably defer my pension and SS until after I am under Medicare.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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04-01-2013, 12:57 PM
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#11
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Full time employment: Posting here.
Join Date: Dec 2010
Posts: 576
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pb4uski.
Think of that is involuntary LBYM.
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04-01-2013, 01:09 PM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2013
Posts: 9,358
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I think the subsidies are an additional incentive to move to a low cost of living area, since the income limits are the same no matter where you live. The lower a household's annual expenses, the less income is needed to cover them.
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04-01-2013, 01:13 PM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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I think this changes the equation on the "pay off the mortgage early" discussions. No mortgage = lower income needs = greater opportunity for subsidy.
__________________
Numbers is hard
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04-01-2013, 01:27 PM
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#14
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Recycles dryer sheets
Join Date: Feb 2012
Location: Florida's west coast
Posts: 160
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If I retire when I plan to in another year, I will have 7 gap years till Medicare kicks in. If things go well and DH continues to work for the next 3 years, he will cover me for medical and I may only have 5 gap years.
My ex employer had an Aetna plan for retirees that is not subsidized, but seemed reasonable for the coverage. When the day arrives, I will look at compare that with the ACA and see which is better for me at that time.
SO, in the event that I may use the ACA for several years, I am planning to keep my income low enough to get a subsidy of some amount and am making sure I have adequate cash reserves to get through those years.
How can I pass up a discount when I have enough time to plan for it?
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04-01-2013, 01:33 PM
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#15
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Recycles dryer sheets
Join Date: Sep 2012
Posts: 459
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I'm planning to be on obamacare In future. We will be family of 5 until my daughter finishes her college in 2022 and then family of 4 until 2030...that means i will keep MAGI below 110K initially and then 92K after 2022. Kids upto 26 can stay on parents plan provided they're in college and hoping my kids get into medical college which takes 8 yrs to complete.
__________________
Retired at age 52 on 12/1/2016
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04-01-2013, 02:00 PM
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#16
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Moderator Emeritus
Join Date: May 2007
Posts: 12,901
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Quote:
Originally Posted by daylatedollarshort
I think the subsidies are an additional incentive to move to a low cost of living area, since the income limits are the same no matter where you live. The lower a household's annual expenses, the less income is needed to cover them.
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I agree. It's a lot more manageable to stay under the threshold if you live in the South than if you live on the West Coast. So it sounds like those who already pay a lot (for taxes, RE, etc...) will end up paying even more (less likely to be subsidized).
This discussion comes at the right time. The tenants in my Ala. house have made an offer to purchase it. Now I'm not so sure I should sell. We can live very comfortably on less than $60K there.
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04-01-2013, 02:14 PM
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#17
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
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Quote:
Originally Posted by W2R
Oh good! That is what I thought or at least hoped. Those tables only go to age 64 anyway, and in 2014 I will be 65-66 years old. So, I voted "Don't plan to use ACA plan, have alternative health care"
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There are 24 provisions of the PPACA that are directly related to Medicare. Some affect service providers and not consumers, but others are very much of interest to members. Examples are medica advantage plan subsidies and pricing, the drug plan coverage gap, and premiums for higher earning retired people. KFF has an easy to real drop down window to see all the changes here Implementation Timeline - Kaiser Health Reform
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04-01-2013, 02:33 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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Assuming Megaconglomocorp doesn't screw me out of it alter it, I'll have retiree, subsidized HI.
Plus, I won't need to work very hard at all to stay under the AGI threshold...
__________________
Have Funds, Will Retire
...not doing anything of true substance...
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04-01-2013, 02:52 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Posts: 7,438
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What about those who withdraw enough for 3 years of expenses?
So one year with big income and then the next two years, nothing.
Can it be that easy to determine your income so that you get the subsidy?
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04-01-2013, 04:24 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
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This Is a good idea. I like it. Thanks for sharing.
Quote:
Originally Posted by explanade
What about those who withdraw enough for 3 years of expenses?
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__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
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