On Fri, 24 Jul 2015 05:06:59 -0700
Keith Smith <
techlists@phpcoderusa.com> wrote:
> If you are going to take out a state or federal exchange policy you
> can figure on high rates and high deductibles. Last year the
> affordable care act was going to cost my wife and I $750 a month with
> a $6,200 annual deductible per person. It is my understanding that
> those rates may have gone up as much as 40% this year. I am priced
> out of the market. And I had to pay a fine this year....
>
> Any thoughts?
Yes.
You and I have very different ideas of "high". As the head of a
household of five people, each with preexisting conditions (and our
whole family probably all live to 85 without much medical intervention,
but that's for another day), I was paying almost $3000/month for a
family policy of $10K deductible for the family. In almost every year
(except the year I had a hernia sewed up), we never got past the
deductible, so the $36K I gave the insurance company was free and clear
to them. My alternative was to risk losing the house if I got run over
on a bicycle ride.
I would have skipped merrily down the street to insure myself and my
wife for $750.
LOL, I had to give back all my Obamacare tax credits and *still* saved
over $1100/month on substantially the same policy.
The unforseen problem with Obamacare is the supreme court decision that
gave states the right to opt out of the Medicaid Expansion. States that
opted out created a huge hole consisting of working Americans who made
too much for traditional Medicaid, but who would have had to eat beans
every night and drive 20 year old cars to afford the insurance
premiums. Florida, where I live, is such a state, and I know people who
fall into that hole. I see from
http://familiesusa.org/product/50-state-look-medicaid-expansion that
Arizona is a Medicaid Expansion state.
I have no idea how much money you make. If you and your wife really
have to pay $750/month in spite of the available tax credits, you're
making enough money that it's not a matter of affordability, it's a
matter of priorities. That works well if you have few assets, but if
you have a house and a college fund for the kids, one hit and run
driver could cause you to completely lose those with a week's hospital
stay. You could be in debt for years.
Next open enrollment period, I'd suggest you call the Marketplace and
really ask what's going on. Fill out the app with your income, etc, and
find out how much tax credit you'll get. *Do not* rely on street
gossip: There are a lot of people spouting a lot of nonsense about
Obamacare, in order to hone their political credentials.
One more piece of advice if you do go through the marketplace: Don't
make the mistake I made last year: I applied the tax credits to the
($1850/month) premiums to get them down to about $900. Well, I had a
good year last year, made too much money, and had to give back every
cent of the credits when I filled out my taxes. $20K all at once.
Instead of doing what I did, pay your whole premium out of pocket, and
collect your tax credit at tax time. That way any surprises you get
will be pleasant ones.
The bottom line is this: Being a freelancer is now a whole lot less
worrysome for a person who's older or whose health measurements aren't
pristine, than freelancing was before 1/1/2014. Take it from me: I've
been freelancing since 1984, and my two worst problems were health
insurance and section 1706 of the 1986 tax law.
SteveT
Steve Litt
July 2015 featured book: Rapid Learning for the 21st Century
http://www.troubleshooters.com/rl21
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