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They're millionaires, and they get Obamacare subsidies
Old 01-27-2016, 05:42 PM   #1
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They're millionaires, and they get Obamacare subsidies

Not much new here... but applies to many of us

I have yet to abandon my grandfathered plan, but I am making plans for that day.


This one weird trick can help even rich people buy Obamacare at sharply reduced prices. Really.

A number of wealthy individuals, some of whom were "disgusted" with Obamacare when it first went into effect, nonetheless are now taking advantage of federal financial aid available under that health-care law to help significantly reduce their monthly insurance premiums.



They're millionaires, and they get Obamacare subsidies
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Old 01-27-2016, 05:51 PM   #2
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This has been discussed many times here, many members receive premium assistance.
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Old 01-27-2016, 06:09 PM   #3
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She seems like a smart FA and I don't say that often

means testing subsidies wouldn't be practical
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Old 01-27-2016, 06:12 PM   #4
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When my GF and I retire this year, she has ~.6M in assets. She will get nearly free health insurance, compliments of the State of MN. $20 a month, $0 deductible for medical, vision, dental, pharmacy and even rides to and from the appointments.

I am a multi-millionaire, I get free health insurance from the VA.

It's not uncommon. Do not blame the people for taking advantage of a program, blame the program if you do not like it.
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Old 01-27-2016, 06:16 PM   #5
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Do not blame the people for taking advantage of a program, blame the program if you do not like it.
big time - the best deal for seniors is the 3/1 ratio rule
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Old 01-27-2016, 06:17 PM   #6
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I am simply shocked, just shocked, that people would structure their income to reduce expenses.

Lessee, where else have I heard of people doing that?
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This could throw a wrench in a lot of ER/Obamacare plans...
Old 01-27-2016, 06:18 PM   #7
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This could throw a wrench in a lot of ER/Obamacare plans...

First article out in the mainstream press that I can remember where the anomaly of "millionaires" getting subsidy from Obamacare. Interesting to see if this becomes more prevalent and Congress decides to do something about the "loophole"...

They're millionaires, and they get Obamacare subsidies


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Old 01-27-2016, 06:30 PM   #8
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This article was pretty silly for anyone actually paying attention.

Next they'll be complaining that some folks with $1M in assets actually are getting health care from medicare?

Or complaining that people with kids get child tax credits. Or that folks who pay mortgage interest can deduct it.

It's all part of the tax code. Smart people claim the credits and deductions that are applicable.
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Old 01-27-2016, 06:50 PM   #9
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a "millionaire" infers "wealth", when in fact, a retired person with 1M invested, using a conservative 4% WR (which many including me don't feel is all that conservative considering how much risk one must take on to attempt to generate a 4% return) is living on 40K + SS if they get it.

40K + SS is not "rich"...
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Old 01-27-2016, 07:14 PM   #10
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a "millionaire" infers "wealth", when in fact, a retired person with 1M invested, using a conservative 4% WR (which many including me don't feel is all that conservative considering how much risk one must take on to attempt to generate a 4% return) is living on 40K + SS if they get it.

40K + SS is not "rich"...
Good Point!
I will be doing taxes for seniors and low income people with the AARP-IRS program starting Monday. In my classes we had a long discussion about the impacts of Shared Responsibility Payments and premium assistance. This year if you are uninsured, the SRP (penalty) is $975. Next year it goes up to over $2000.
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Old 01-27-2016, 07:17 PM   #11
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I wonder how much money you would need to be indifferent to health care costs. Certainly you'd need more then one million dollars. Without health insurance, a million in health care costs could be a drop in the bucket.

I suspect eventually there could be some means testing applied,at 62 and on private insurance it won't have an impact on me, but some of our early ER's with families could be very impacted. I suspect 5 years from now Obamacare will look very different.
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Old 01-27-2016, 08:19 PM   #12
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I wonder how much money you would need to be indifferent to health care costs. Certainly you'd need more then one million dollars. Without health insurance, a million in health care costs could be a drop in the bucket.

I suspect eventually there could be some means testing applied,at 62 and on private insurance it won't have an impact on me, but some of our early ER's with families could be very impacted. I suspect 5 years from now Obamacare will look very different.
they might even stop calling it "Obamacare".
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Old 01-27-2016, 08:21 PM   #13
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they might even stop calling it "Obamacare".
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Old 01-27-2016, 08:31 PM   #14
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a "millionaire" infers "wealth"

That's so often true. And in this instance the author made sure to reinforce that perception by using "millionaire", "wealth" and "rich" nearly interchangeably within the first two paragraphs. But then we knew that going in based on the title. As usual, the best part is the comment section though even that wore thin before long. I guess I'm less easily entertained than in the past.
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Old 01-27-2016, 09:46 PM   #15
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It's all part of the tax code. Smart people claim the credits and deductions that are applicable.
+1

I'm not even sure why anybody would be upset up about this. The average ACA subsidy is something like $3-4k. That's peanuts when talking about tax breaks.
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Old 01-27-2016, 10:20 PM   #16
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I wonder if you folks are underestimating the PR affect of this to members of Congress. To me it falls into a similar category of recent changes Congress made to Social Security by eliminating file and suspend. Didn't impact a lot of people but Congress went after it anyway.


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Old 01-27-2016, 11:26 PM   #17
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I wonder if you folks are underestimating the PR affect of this to members of Congress. To me it falls into a similar category of recent changes Congress made to Social Security by eliminating file and suspend. Didn't impact a lot of people but Congress went after it anyway.


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Good point. As MichaelB pointed out, we have been discussing that around here for years. This was the first main stream article I've come across discussing these "gaming" strategies...
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Old 01-28-2016, 04:31 AM   #18
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Obamacare subsidy does not consider wealth, only income. No questions about net worth, assets, etc., only current income, which can be reduced by business expenses (for the self employed), IRA and HSA contributions. I guess the pointy heads in Washington consider only people making large incomes to be in the evil 1%, whatever.

A couple with $75k in income each year could reduce it to $60k or less, with IRA and HSA contributions and business deductions. That would qualify for some subsidy (62K or less for couples).

If said couple were "paper millionaires", and they can live on $62k or less (net income), they would qualify.

Crazy!
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Old 01-28-2016, 05:44 AM   #19
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I wonder if you folks are underestimating the PR affect of this to members of Congress. To me it falls into a similar category of recent changes Congress made to Social Security by eliminating file and suspend. Didn't impact a lot of people but Congress went after it anyway.
Precisely. This is how we got the Alternative Minimum Tax -- because 155 people with adjusted gross income of greater than $200,000 paid no income tax in 1969.
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Old 01-28-2016, 06:13 AM   #20
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I'm not even sure why anybody would be upset up about this. The average ACA subsidy is something like $3-4k. That's peanuts when talking about tax breaks.
Exactly. In fact, it keeps people working. You can work, continue to pay some taxes, and get a subsidy. Even contribute to a retirement account.

The other option is people do not work to accumulate anything, and get a lot more than an ACA subsidy. People would retire before they ever started working when you create a high work penalty.
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