|
|
03-24-2021, 01:37 PM
|
#41
|
Recycles dryer sheets
Join Date: Nov 2017
Location: Seattle
Posts: 452
|
Quote:
Originally Posted by Aerides
I'm sure there are a great many people who are glad they can keep their kids on their workplace insurance until age 26. That's also part of the ACA. And the whole not-getting-refused thing that enabled a lot of people to retire, when they otherwise could not because of pre-existing conditions.
Oh and the lifetime cap thing. So many provisions in the law, but everyone tends to equate the ACA with its marketplace plans, when that's really less than half of the legislation.
|
+1, my 24 yo daughter and most of her same age friends are on parental insurance.
I really like the removal of the cliff. I think it will help a lot of lower and middle wage working families.
__________________
Retired 2015 at age 55...50/45/5 AA
|
|
|
|
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!
|
03-24-2021, 04:03 PM
|
#42
|
Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,657
|
|
|
|
03-24-2021, 05:30 PM
|
#43
|
Recycles dryer sheets
Join Date: Nov 2004
Location: SF Bay Area
Posts: 306
|
Wow. I hadn't heard of this change until now. This could have a big impact on me though who knows what the law will look like in another 6 years when I'm ready to retire. I'm still holding out hope they will lower Medicare eligibility to age 60.
|
|
|
03-30-2021, 03:49 PM
|
#44
|
Recycles dryer sheets
Join Date: May 2020
Location: Midwest
Posts: 238
|
OK...DH is retiring this year; I have 2 yrs. I will keep our current insurance as our 2 youngest can still be on it.
I believe our BC/BS retirement rate is about $1100/mo. after the kids drop off (we expect that in 2 years). Our deductibles aren't too bad. (sry, exact numbers escape me)
If there is an 8.5% cap, that puts us at under $650/mo--but what kind of deductibles could we be looking at?
We have had BC/BS our whole lives with zero issues. Are ACA providers as good to work with?
|
|
|
03-30-2021, 04:00 PM
|
#45
|
Recycles dryer sheets
Join Date: Feb 2017
Location: Odenton
Posts: 71
|
Quote:
Originally Posted by 4legsgood
+1, my 24 yo daughter and most of her same age friends are on parental insurance.
I really like the removal of the cliff. I think it will help a lot of lower and middle wage working families.
|
It sure helps me a ton. No worrying about the damn cliff anymore.
|
|
|
03-30-2021, 04:20 PM
|
#46
|
Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,479
|
Quote:
Originally Posted by Librarian
OK...DH is retiring this year; I have 2 yrs. I will keep our current insurance as our 2 youngest can still be on it.
I believe our BC/BS retirement rate is about $1100/mo. after the kids drop off (we expect that in 2 years). Our deductibles aren't too bad. (sry, exact numbers escape me)
If there is an 8.5% cap, that puts us at under $650/mo--but what kind of deductibles could we be looking at?
We have had BC/BS our whole lives with zero issues. Are ACA providers as good to work with?
|
In most states BC/BS is one of the major ACA providers. Unfortunately, ACA plans generally have big deductibles compared to corporate/COBRA plans.
Anyway, you need to shop your own state's marketplace to see what's what.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
|
|
|
03-30-2021, 04:48 PM
|
#47
|
Recycles dryer sheets
Join Date: Aug 2013
Location: Pebble Beach & Cocoa Beach
Posts: 354
|
I'm from the government and here to help. What could go wrong.
|
|
|
03-30-2021, 04:51 PM
|
#48
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,865
|
My state just announced that they are auto-adjusting the APTC starting April 1st, no action needed by the subscriber. Nice.
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
03-30-2021, 05:10 PM
|
#49
|
Recycles dryer sheets
Join Date: Jan 2011
Location: Desert SW
Posts: 358
|
What I still don't understand is what happens when only one of the two married people filing a joint tax return needs the ACA insurance. Does only one person still pay 8.5% of MAGI, whereas if both parties needed the insurance it would still be 8.5%?
__________________
Retired in 2011 at 54
|
|
|
03-30-2021, 05:17 PM
|
#50
|
Recycles dryer sheets
Join Date: Sep 2006
Posts: 151
|
Yep
Quote:
Originally Posted by Packman
What I still don't understand is what happens when only one of the two married people filing a joint tax return needs the ACA insurance. Does only one person still pay 8.5% of MAGI, whereas if both parties needed the insurance it would still be 8.5%?
|
That's what I am seeing as DH starts Medicare this fall.
However the impact is somewhat lessoned as we use bronze plans and the % is based on the second lowest cost silver plan.
|
|
|
03-30-2021, 05:22 PM
|
#51
|
Recycles dryer sheets
Join Date: Jan 2011
Location: Desert SW
Posts: 358
|
Quote:
Originally Posted by GLM
That's what I am seeing as DH starts Medicare this fall.
However the impact is somewhat lessoned as we use bronze plans and the % is based on the second lowest cost silver plan.
|
Doesn't seem right that two people pay the same price as one.
__________________
Retired in 2011 at 54
|
|
|
03-30-2021, 05:30 PM
|
#52
|
Recycles dryer sheets
Join Date: Sep 2006
Posts: 151
|
Quote:
Originally Posted by Packman
Doesn't seem right that two people pay the same price as one.
|
It's not right , but they wrote the law in a hurry and there are glitches, like the family glitch.
|
|
|
03-30-2021, 05:31 PM
|
#53
|
Thinks s/he gets paid by the post
Join Date: Jul 2007
Posts: 3,222
|
Quote:
Originally Posted by Librarian
OK...DH is retiring this year; I have 2 yrs. I will keep our current insurance as our 2 youngest can still be on it.
I believe our BC/BS retirement rate is about $1100/mo. after the kids drop off (we expect that in 2 years). Our deductibles aren't too bad. (sry, exact numbers escape me)
If there is an 8.5% cap, that puts us at under $650/mo--but what kind of deductibles could we be looking at?
We have had BC/BS our whole lives with zero issues. Are ACA providers as good to work with?
|
You can check the ACA plans available to you here, https://www.healthcare.gov/see-plans/#/. The cost ($650/mo) you calculated is based on selecting the second lowest cost silver plan available to you. Your cost could be less than that if selecting a Bronze plan or more if selecting a higher cost Silver plan with lower deductibles. At my location I have 16 Silver plans to choose from, the plans with a very low deductible are pricy. Also, the 8.5% cap is only guaranteed to last through 2022, I'm sure they will try to extend it but....
|
|
|
03-30-2021, 05:36 PM
|
#54
|
Recycles dryer sheets
Join Date: Nov 2004
Location: SF Bay Area
Posts: 306
|
When does this take effect? Just priced some plans on Covered California, assuming a May 1 start date for a family of 5 and 200k income and cheapest I'm seeing for a Silver Plan is an HMO for over $3k/mo with a $8k family deductible. If I want a PPO, it's $3,900/mo.
That's 18%+ MAGI. Ouch!
|
|
|
03-30-2021, 06:27 PM
|
#55
|
Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,948
|
Quote:
Originally Posted by OldShooter
.
The thing the ACA tried to do is to add an extra charge the healthiest customers' premiums and use that overcharge to subsidize other customers' risk premiums. In the term insurance example, it would be like the 25YO being overcharged and the 65YO being charged less than his risk calculation would call for. Much of this discount was due to accepting customers with preexisting conditions without making those customer pay the real cost of their insurance. There really is a free lunch for those folks. The actuarially healthier folks at the next table paid. Or at least that was the plan.
Now you can argue whether this kind of cross-subsidy is desirable or not but the fact is that the cohort that the government planned to overcharge figured out the scam and refused to play the game.
|
Bingo.
And this is the reason why, without a true enforcement of the mandatory enrollment, that the plan was doomed for failure -- and I might add predicted by people like myself.
Self-selection bias. If the people are able to choose whether to enroll or not-enroll, then the results are that those who are "sicker" will enroll, and those who are not won't. This results in higher payments out of the $ paid by premiums than expected, which results in higher premiums, which results in those who are "really sicker" staying in the plan while those who are "only a littler sicker" dropping out (due to increased premiums), and the non-virtuous cycle continues.
This can be seen prior to the ACA in states that had "community rated" plans and disallowed exams/checks for pre-existing conditions. (As an example, NY was this way). Yes, anyone could get a plan but the costs were much higher - and if you were a healthy 25 year old would you pay $800/month for health insurance? For many, the answer was no.
|
|
|
03-30-2021, 06:41 PM
|
#56
|
Full time employment: Posting here.
Join Date: May 2017
Location: Southeastern PA
Posts: 766
|
Quote:
Originally Posted by USGrant1962
In most states BC/BS is one of the major ACA providers. Unfortunately, ACA plans generally have big deductibles compared to corporate/COBRA plans.
Anyway, you need to shop your own state's marketplace to see what's what.
|
Yes, you need to shop since what's available varies a lot for different states and even regions.
Our Silver plan, e.g., has a $0 deductible and is a BC/BS. But, the copays are relatively high - $40 to see our primary and $80 to see a specialist.
My old corporate plan had a $1,250 deductible.
|
|
|
03-31-2021, 06:18 AM
|
#57
|
Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,657
|
Quote:
Originally Posted by gooddog
I'm from the government and here to help. What could go wrong.
|
It will be great, Well, unless you are the tax payer.
|
|
|
03-31-2021, 06:27 AM
|
#58
|
Thinks s/he gets paid by the post
Join Date: Jun 2017
Location: Western NC
Posts: 4,609
|
Quote:
Originally Posted by Time2
It will be great, Well, unless you are the tax payer.
|
Yep, we now have four major health systems where most or all costs are paid by taxpayers...Medicare, Medicaid, VA, ACA...wonder how much costs could be squeezed if you simply combined them all...most national public health services operate like our Medicaid anyway.
|
|
|
03-31-2021, 06:31 AM
|
#59
|
Thinks s/he gets paid by the post
Join Date: Oct 2019
Posts: 3,657
|
Quote:
Originally Posted by Packman
Doesn't seem right that two people pay the same price as one.
|
The part that doesn't seem right to me, is that we are subsidizing a family of 2 making $70K a year and a family of 4 making $104k. I thought it was poor people that needed help.
|
|
|
03-31-2021, 06:40 AM
|
#60
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,584
|
The single biggest tax benefit the US Government provides is the health insurance tax break for employed people, and the highest income employees earn the greatest benefit. This is never mentioned when people complain about a benefit others receive.
The median household income in the US is around $69k, and the average cost of large group family health insurance is $21k. Before tax, that’s almost 1/3, before payroll and income tax. Health care insurance is unaffordable for middle income working families, and they only get it at all because it’s paid by the employers.
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|