Originally Posted by oliverdickens
I think there is a loop hole in this new law that will affect us on RE and are able to pay of insurance now, even if our incomes fall within the subsidy rules.
It seems that you will only get the subsidy IF you do not have insurance when it is mandated that you must, and you fall within the income guidelines.
If you already have insurance, ie gov't deems you can afford it, no matter your income level, you will not be eligible.
I certainly don't know but I really hope/think this incorrect. I would think that contractor who sees his income cut dramatically one year and could know longer wouldn't need to drop coverage for a year in order.
I'm reading that at tax credits will be available that limit the total percentage of income that one will pay for health insurance premiums, up to incomes of 400% FPL. At 400% FPL, one would pay up to 9.5% of their income for health insurance premiums. This is where the huge step function occurs. At 401% FPL, I don't believe there are any tax credits available to keep health insurance costs to 9.5% of income, hence you are paying the full premium out of pocket.
I found that same thing playing the the Kaiser foundation calculator
In 2014 when I am 53, if I make 43,300 I get a $1844 subsidy for a $6,000+ policy at $43,400 I get zero subsidy. I drop it down to 39,300 I get $2,236 or just under 10% subsidy per dollar earned.
Lots of interesting question on what they treat as income, is the same as AGI?
The cool news is that certain to create job is providing calculators, guides, books on how to maximize your government subsidy.
Who wants to help me create MediCalc?