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They're millionaires, and they get Obamacare subsidies
01-27-2016, 04:42 PM
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#1
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Recycles dryer sheets
Join Date: Oct 2012
Location: Salt Lake City, UT
Posts: 329
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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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01-27-2016, 04:51 PM
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#2
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
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This has been discussed many times here, many members receive premium assistance.
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01-27-2016, 05:09 PM
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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: May 2013
Location: Les Bois
Posts: 5,761
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She seems like a smart FA and I don't say that often
means testing subsidies wouldn't be practical
__________________
You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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01-27-2016, 05:12 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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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.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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01-27-2016, 05:16 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2013
Location: Les Bois
Posts: 5,761
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Quote:
Originally Posted by Senator
Do not blame the people for taking advantage of a program, blame the program if you do not like it.
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big time - the best deal for seniors is the 3/1 ratio rule
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You can't be a retirement plan actuary without a retirement plan, otherwise you lose all credibility...
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01-27-2016, 05:17 PM
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#6
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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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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When I was a kid I wanted to be older. This is not what I expected.
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This could throw a wrench in a lot of ER/Obamacare plans...
01-27-2016, 05:18 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 1,190
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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
Sent from my iPad using Early Retirement Forum
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01-27-2016, 05:30 PM
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#8
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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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.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 6%, rental income 20%
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01-27-2016, 05:50 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
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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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01-27-2016, 06:14 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Santa Paula
Posts: 4,076
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Quote:
Originally Posted by HadEnuff
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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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.
__________________
Retired Jan 2009 Have not looked back.
AA 60/35/5 considering SS and pensions a SP annuity
WR 2% with 2SS & 2 Pensions
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01-27-2016, 06:17 PM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2007
Posts: 9,958
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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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01-27-2016, 07:19 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
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Quote:
Originally Posted by ivinsfan
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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they might even stop calling it "Obamacare".
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01-27-2016, 07:21 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: Feb 2007
Posts: 9,958
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01-27-2016, 07:31 PM
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#14
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Recycles dryer sheets
Join Date: Sep 2011
Location: MSP
Posts: 304
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Quote:
Originally Posted by HadEnuff
a "millionaire" infers "wealth"
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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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01-27-2016, 08:46 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Jun 2010
Posts: 2,301
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Quote:
Originally Posted by rodi
It's all part of the tax code. Smart people claim the credits and deductions that are applicable.
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+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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01-27-2016, 09:20 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Oct 2009
Posts: 1,190
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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.
Sent from my iPad using Early Retirement Forum
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01-27-2016, 10:26 PM
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#17
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Recycles dryer sheets
Join Date: Oct 2012
Location: Salt Lake City, UT
Posts: 329
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Quote:
Originally Posted by LARS
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.
Sent from my iPad using Early Retirement Forum
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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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01-28-2016, 03:31 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,795
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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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01-28-2016, 04:44 AM
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#19
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Administrator
Join Date: Apr 2006
Posts: 23,038
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Quote:
Originally Posted by LARS
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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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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Living an analog life in the Digital Age.
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01-28-2016, 05:13 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by photoguy
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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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.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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