http://healthreform.kff.org/en/SubsidyCalculator.aspx
I just started playing with it about 30 minutes ago and came up with this hypothetical example.
As my post suggests in the Papa John's thread, this is a VERY complicated piece of legislation and the tax figures of who benefits and who doesn't is going to be extremely difficult to calculate. I will definitely be elaborating and, who knows, post a new example every few days. I encourage everyone to use their real life income and situation and do the scenario as I did: Assume you don't have employer offered insurance. I have found a number of GAPING holes in the ACA that could really F up the middle class; however, I, nor anyone else, probably know exactly to what extent the various employers and health insurance companies will interact and mix like a crazy schizophrenic playing with a chemistry set.
Keep in mind there are no real price controls over medication costs, medical costs in general, or most importantly, no control over how high insurance premiums can rise. Think about this: if 20% of premium costs can be spent on anything other than health care, then the only way to grow the amount is to grow that 20%: Raise the F out of the premiums.
Age 63 family of 4 Penalty is $695 or 2.5%, max of $2095
$93,600 salary= 400% poverty
Premium = $27,308 employee must pay ENTIRE AMOUNT (no subsidy)
If employer did offer coverage employee could pay - $8,892 (9.5%)
If employee makes $93,500 must pay $8,883 for coverage (tax credit $18,426)
Sucks to make that extra $100 bucks doesn't it? That's a penalty of $18,425 for making the extra $100.
$50,000 salary - must pay Health premium $3,385 (tax credit $23,923)
Difference of $5,507 between between tax credits from 50,000 salary to $93,500
ACA tax on the additional 43,500 - 12.66%
Holy Gay ObamaRomney Sex Batman! That's an insane tax!
Another point: the penalty being capped at $2,095 ASSURES this mandate is crazy regressive. Obviously, if the person isn't on their death bed or have cancer, they would pay the penalty of $2,095 if they made $93,600. They might even pay it if they made anywhere in the neighborhood of 90k and save the 6k difference.
If you make 100k the mandate penalty is a tax of 2.1%
If you make 10 million the mandate penalty is a tax of .02%
We have to see how this plays out but I have no doubts if Obama wins this is going to QUICKLY spiral out of control into a single payer system. I give it less than 5 years until too many scenerios like this are out there combine with out of control premiums to lead to one of TWO OUTCOMES.
1. GOP gets their way, ACA is repealed, health care costs continue to go out of control, medicare gets destroyed by Paul Ryan, apocalypse strikes - get your SHOTGUNS BABY NWO LOL
2. Progressives (Notice I didn't say Democrats) get their way, Single Payer gets passed and we all hold hands and sing koom-ba-yah etc RAINBOW!
Caveat: Yes, I realize this is an outlier because of the age: 63, points remain.
Comments? Run your scenerios!
I just started playing with it about 30 minutes ago and came up with this hypothetical example.
As my post suggests in the Papa John's thread, this is a VERY complicated piece of legislation and the tax figures of who benefits and who doesn't is going to be extremely difficult to calculate. I will definitely be elaborating and, who knows, post a new example every few days. I encourage everyone to use their real life income and situation and do the scenario as I did: Assume you don't have employer offered insurance. I have found a number of GAPING holes in the ACA that could really F up the middle class; however, I, nor anyone else, probably know exactly to what extent the various employers and health insurance companies will interact and mix like a crazy schizophrenic playing with a chemistry set.
Keep in mind there are no real price controls over medication costs, medical costs in general, or most importantly, no control over how high insurance premiums can rise. Think about this: if 20% of premium costs can be spent on anything other than health care, then the only way to grow the amount is to grow that 20%: Raise the F out of the premiums.
Age 63 family of 4 Penalty is $695 or 2.5%, max of $2095
$93,600 salary= 400% poverty
Premium = $27,308 employee must pay ENTIRE AMOUNT (no subsidy)
If employer did offer coverage employee could pay - $8,892 (9.5%)
If employee makes $93,500 must pay $8,883 for coverage (tax credit $18,426)
Sucks to make that extra $100 bucks doesn't it? That's a penalty of $18,425 for making the extra $100.
$50,000 salary - must pay Health premium $3,385 (tax credit $23,923)
Difference of $5,507 between between tax credits from 50,000 salary to $93,500
ACA tax on the additional 43,500 - 12.66%
Holy Gay ObamaRomney Sex Batman! That's an insane tax!
Another point: the penalty being capped at $2,095 ASSURES this mandate is crazy regressive. Obviously, if the person isn't on their death bed or have cancer, they would pay the penalty of $2,095 if they made $93,600. They might even pay it if they made anywhere in the neighborhood of 90k and save the 6k difference.
If you make 100k the mandate penalty is a tax of 2.1%
If you make 10 million the mandate penalty is a tax of .02%
We have to see how this plays out but I have no doubts if Obama wins this is going to QUICKLY spiral out of control into a single payer system. I give it less than 5 years until too many scenerios like this are out there combine with out of control premiums to lead to one of TWO OUTCOMES.
1. GOP gets their way, ACA is repealed, health care costs continue to go out of control, medicare gets destroyed by Paul Ryan, apocalypse strikes - get your SHOTGUNS BABY NWO LOL
2. Progressives (Notice I didn't say Democrats) get their way, Single Payer gets passed and we all hold hands and sing koom-ba-yah etc RAINBOW!
Caveat: Yes, I realize this is an outlier because of the age: 63, points remain.
Comments? Run your scenerios!
Last edited:
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