Obamacare Cliff

[check6]

Quote:

Originally Posted by Mulligan 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.

[No_Such_Reality]

Quote:

Originally Posted by M Paquette 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.

[brett]

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

[meierlde]

Quote:

Originally Posted by No_Such_Reality 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.

[No_Such_Reality]

Quote:

Originally Posted by rbmrtn 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.

[madbrain]

Quote:

Originally Posted by fh2000 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 .