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Health Care Costs

Posted on 11/08/2012 4:34:53 PM PST by jda

Just enrolled in my company healthcare plan for next year.

TOPICS: Business/Economy; Culture/Society; Government; Politics/Elections
KEYWORDS: vanity
Ok, I just enrolled in my company's healthcare plan for 2013. Without changing any coverages, the cost went up about 5%. As if that isn't bad enough:

- the out-of-pocket maximum for in-network coverage went from $10,000 to $12,500 (from $30,000 to $37,500 for out-of network coverage)
- the Flexible Spending Account maximum is now $2,500.

I thought 0bama told us healthcare costs would go down???

1 posted on 11/08/2012 4:34:55 PM PST by jda
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To: jda

Here are some of the new taxes you’re going to have to pay to pay for Obamacare:

A 3.8% surtax on “investment income” when your adjusted gross income is more than $200,000 ($250,000 for joint-filers). What is “investment income?” Dividends, interest, rent, capital gains, annuities, house sales, partnerships, etc. Taxes on dividends will rise from 15% to 18.8%—if Congress extends the Bush tax cuts. If Congress does not extend the Bush tax cuts, taxes on dividends will rise from 15% to a shocking 43.8%. (WSJ)
A 0.9% surtax on Medicare taxes for those making $200,000 or more ($250,000 joint). You already pay Medicare tax of 1.45%, and your employer pays another 1.45% for you (unless you’re self-employed, in which case you pay the whole 2.9% yourself). Next year, your Medicare bill will be 2.35%. (WSJ)
Flexible Spending Account contributions will be capped at $2,500. Currently, there is no tax-related limit on how much you can set aside pre-tax to pay for medical expenses. Next year, there will be. If you have been socking away, say, $10,000 in your FSA to pay medical bills, you’ll have to cut that to $2,500. (
The itemized-deduction hurdle for medical expenses is going up to $10,000. Right now, any medical expenses over $7,500 per year are deductible. Next year, that hurdle will be $10,000. (
The penalty on non-medical withdrawals from Healthcare Savings Accounts is now 20% instead of 10%. That’s twice the penalty that applies to annuities, IRAs, and other tax-free vehicles. (
A tax of 10% on indoor tanning services. This has been in place for two years, since the summer of 2010. (
A 40% tax on “Cadillac Health Care Plans” starting in 2018.Those whose employers pay for all or most of comprehensive healthcare plans (costing $10,200 for an individual or $27,500 for families) will have to pay a 40% tax on the amount their employer pays. The 2018 start date is said to have been a gift to unions, which often have comprehensive plans. (
A”Medicine Cabinet Tax” that eliminates the ability to pay for over-the-counter medicines from a pre-tax Flexible Spending Account. This started in January 2011. (
A “penalty” tax for those who don’t buy health insurance. This will phase in from 2014-2016. It will range from $695 per person to about $4,700 per person, depending on your income. (More details here.)
A tax on medical devices costing more than $100. Starting in 2013, medical device manufacturers will have to pay a 2.3% excise tax on medical equipment. This is expected to raise the cost of medical procedures. (

So those are some of the new taxes you’ll be paying that will help pay for Obamacare.

Any big ones I’ve missed?

Note that these taxes are both “progressive” (aimed at rich people) and “regressive” (aimed at the middle class and poor people). The big ones—the 3.8% investment income hike and the Medicare tax increase—only hit you if you’re making more than $200,000 a year. The rest hit you no matter how much you’re making.

Here’s How Much The Obamacare Penalty Tax Will Cost You

Many Americans are furious that Obamacare will require them to buy health insurance.

Most of these folks seem to hate the idea that Obama is forcing them to do something more than they hate the idea of shelling out money.

But for those who also care about the money, here are the details.

The good news is that, for most people, the “penalty tax” for those who choose not to buy health insurance will cost a lot less than health insurance.

As with everything tax-related, there’s no simple answer to “How much is the Obamacare penalty tax?” But here are some key points, from

The penalty/tax will be phased in from 2014 to 2016.
The minimum penalty/tax in 2016 will be $695 per person and up to 3-times that per family. After 2016, these amounts will increase at the rate of inflation.
The minimum penalty/tax per person will start at $95 in 2014 (and then increase through 2016)
No family will ever pay more than 3X the per-person penalty, regardless of how many people are in the family.
The $695 per-person penalty is only for those who make between $9,500 and ~$37,000 per year. If you make less than ~$9.500, you’re exempt. If you make more than ~$37,000, your penalty is calculated by the following formula...
The penalty is 2.5% of any household income above the level at which you are required to file a tax return. That level is currently $9,500 per person and $19,000 per couple. The penalty on any income above that is 2.5%. So the penalty can get expensive quickly if you make a lot of money.
However, the penalty can never be more than the cost of a “Bronze” heath insurance plan purchased through one of the state “exchanges” that will be created as part of Obamacare. The CBO estimates that these policies will cost $4,500-$5,000 per person and $12,000-$12,500 per family in 2016, with the costs rising thereafter.

So, basically, you’re looking at penalties of approximately the following at the following income levels:

Less than $9,500 income = $0
$9,500 - $37,000 income = $695
$50,000 income = $1,000
$75,000 income = $1,600
$100,000 income = $2,250
$125,000 income = $2,900
$150,000 income = $3,500
$175,000 income = $4,100
$200,000 income = $4,700
Over $200,000 = The cost of a “bronze” health-insurance plan

The IRS will collect the penalty-tax, a fact that will no doubt further enrage those who hate Obamacare.

But here’s some more good news for those folks:

The IRS will not have the power to charge you criminally or seize your assets if you refuse to pay. The IRS will only have the ability to sue you. And the most the IRS can collect from you if it wins the suit is 2X the amount you owe. So if you want to thumb your nose at the penalty-tax, the IRS won’t be able to do as much to you as they could if you refused to pay, say, income tax.

By the way, the following folks will be exempt from the penalty-tax:

Those who make less than $9,500
Employees whose employers only offer plans that cost more than 8% of the employee’s income
Those with “hardships”
Members of Indian tribes
Members of certain religions that don’t pay Social Security tax, such as Amish, Hutterites or Mennonites

2 posted on 11/08/2012 4:41:55 PM PST by Baynative
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To: jda

Enjoy it while you have it - by the time of the next election, your employer will likely drop your health insurance plan and you’ll be buying your health insurance from an exchange. Since many states won’t have exchanges set up, that means you’ll be buying it from Obama’s bureaucrats.

3 posted on 11/08/2012 4:51:09 PM PST by TonyInOhio (I still believe America is worth fighting for.)
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To: Baynative

This is great info. But what about all the waivers? Where’s all that information?

4 posted on 11/08/2012 4:53:28 PM PST by opticks
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To: jda

Ours will go up 18.75% next year, I think my husband’s calculations included the increase in premium, out-of-pocket, etc. Unfortunately, I have a chronic illness so I’m stuck in the system.

5 posted on 11/08/2012 5:07:44 PM PST by Calm_Cool_and_Elected (" Undecided Voter: someone who parades their stupidity as proof of their morality." ~David Burge)
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To: Baynative

Taxes on dividends go from 15% to 43.8% if Bush tax cuts arent’t extended. I better get my money out NOW.

6 posted on 11/08/2012 5:09:14 PM PST by goldi
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To: Baynative

Taxes on dividends go from 15% to 43.8% if Bush tax cuts arent’t extended. I better get my money out NOW.

7 posted on 11/08/2012 5:09:16 PM PST by goldi
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To: jda

My employer along with providing insurance (which has seen out of pockets go higher each year) gives us a Flex Card loaded with $1000 to help with out of pocket expenses.

This year the paperwork is so involved in order for them to provide the Flex Card, that they’re just going to give everyone the money as a bonus. Bad news, it’s not tax deductible, we pay more tax, they pay more tax...but we don’t have the manpower to deal with the increase in oppressive paperwork.

On Fox Business Channel tonight had some CEO’s on the panel. One looked into the camera and said he was addressing Obama...and went on to say “you have to get rid of it” we can’t survive as companies under it. (I’m sure Obama was listening. /sarc)

8 posted on 11/08/2012 5:09:54 PM PST by memyselfandi59
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To: jda

Mine went up $2510 dollars for next year and they switched to an inferior company. And our out of pocket also went up. We are thinking of just paying the fine and go without.

9 posted on 11/08/2012 5:14:19 PM PST by Conservative4Life (Those who don't learn from the past are condemned to repeat it. Elections have consequences.)
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To: memyselfandi59
I’m sure Obama was listening.

Didn't he say during his victory celebration that he was listening? Oh, that's right, he says a lot of things that he never does and is not held accountable.

10 posted on 11/08/2012 5:18:18 PM PST by jda ("Righteousness exalts a nation . . .")
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To: memyselfandi59
we can’t survive as companies under it.

Image and video hosting by TinyPic

And that, sir, is precisely the reason for Obamacare. Deal wit' it.

11 posted on 11/08/2012 5:19:32 PM PST by newheart (The greatest trick the left ever pulled was convincing the world it was not a religion.)
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To: Conservative4Life

Mine (cost of Insurance for Medical) went up 50% for 2013 vs 2012. Insurance is policy thru my employer (a large US Corp). Sigh

12 posted on 11/08/2012 5:20:55 PM PST by Thom Pain (U.S. Constitution is a CONTRACT!)
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To: Baynative
The itemized-deduction hurdle for medical expenses is going up to $10,000. Right now, any medical expenses over $7,500 per year are deductible. Next year, that hurdle will be $10,000. (

I don't think the deduction threshold is a monetary limit. I think it is a percentage of AGI. If you hit the percentage (10%) then your expenses are deductible.

13 posted on 11/08/2012 5:36:41 PM PST by USNBandit (sarcasm engaged at all times)
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To: jda

FIVE PERCENT? Be thankful!

I am a Doctor AND small business owner and even after shopping our group around AGAIN for like the third time in 5 yrs, the best deal we got offered was a 13% increase over last years rates.

Rates aren’t going down...AND, my reimbursements aren’t going up either!

14 posted on 11/08/2012 5:47:20 PM PST by Ethrane ("obsta principiis")
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To: jda

I just wrapped that up too. Like you, I’m seeing several hundred dollars increase across the board. Copays up, out of pocket max up too. Oh, fewer options/plans (about 25% fewer) being offered by my company. But hey, I now have available PPACA mandated “womens services” available. Great, never been an issue for me, and since my wife is past childbearing years (and has had a medical procedure that precludes her ever getting pregnant again) all these “womens services” we’re paying to have available mean exactly squat to us.

15 posted on 11/08/2012 5:47:45 PM PST by ThunderSleeps (Stop obama now! Stop the hussein - insane agenda!)
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To: jda

I’m hoping the fiscal cliff analysis that’s getting underway in earnest will delve into and publicize the costs of Obamacare as it’s now designed.

It would be great to provide everyone cadillac healthcare but we (the country) can’t afford it, period. The unaffordability of Obamacare will cause it to be trimmed to the bone. You might say it’s got its own fiscal cliff looming straight ahead.

16 posted on 11/08/2012 5:49:52 PM PST by cymbeline
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To: Thom Pain

Mine is up 60 percent year over year.

17 posted on 11/08/2012 5:51:31 PM PST by Gabrial (The nightmare will continue as long as the nightmare is in the Whitehouse.)
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To: jda

Wow, those Out of coverage Network costs are astonishing. Very few people could afford those.

If you get cancer and your plan doesn’t cover a top notch unit like City of Hope or UCLA then your face a very tough choice.

18 posted on 11/08/2012 5:56:39 PM PST by desertfreedom765
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To: opticks

Here’s a link to a good summation of the Obamacare waiver mania. It is embedded with specific information:

It is from Jan 2012 and there may be more current information on the web but it is a good resource for starters.

19 posted on 11/08/2012 6:05:21 PM PST by CharlesMartelsGhost
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To: jda

When the ACA goes into effect that out of pocket expense will be lowered by law. What do you think will happen to your premiums then?

20 posted on 11/08/2012 6:31:49 PM PST by USNBandit (sarcasm engaged at all times)
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To: cymbeline
You bring up a very good point. The ACA uses ten years of increased taxes to pay for 5years of coverage. In addition, when they say that the ACA is paid for by those taxes and penalties they only mean a finite number of people.

The way I understand the ACA, taxes+penalties+money pulled from Medicare=the funds required to pay the subsidies to make the insurance "affordable".

Here is why I don't think this will work. If we take a huge drag on the Obama crack pipe and assume the tax revenue and Medicare savings come out as planned then the rest of the subsidies are paid for by penalties. When the number of people needing this coverage increases only the penalty revenue increases. That is a fraction of the amount needed to cover the subsidy. Assuming today's rates for federal government employee coverage and the projected subsidy for a family of 4, the penalty from one employer will only cover 40% of the subsidy. The other 60% isn't budgeted for. Remember this is budgeted for 10 years of revenue to cover 5 years of benefits. At the end of the first 10 years the costs effectively double.

It is doomed to failure and that was the plan all along.

21 posted on 11/08/2012 7:07:04 PM PST by USNBandit (sarcasm engaged at all times)
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