Posted on 11/02/2013 7:12:48 PM PDT by Lmo56
MIAMI (AP) -- Dean Griffin liked the health insurance he purchased for himself and his wife three years ago and thought he'd be able to keep the plan even after the federal Affordable Care Act took effect ...
The Griffins, who live near Philadelphia on the Delaware border, pay $770 monthly for their soon-to-be-terminated health care plan with a $2,500 deductible. The cheapest plan they found on their state insurance exchange was a so-called bronze plan charging a $1,275 monthly premium with deductibles totaling $12,700. It covers only providers in Pennsylvania, so the couple wouldn't be able to see the doctors in Delaware whom they've used for more than a decade.
"We're buying insurance that we will never use and can't possibly ever benefit from. We're basically passing on a benefit to other people who are not otherwise able to buy basic insurance," said Griffin, who is retired from running an information technology company ...
They can buy different policies directly from insurers for 2014 or sign up for plans on state insurance exchanges. While lower-income people could see lower costs because of government subsidies, many in the middle class may get rude awakenings when they access the websites and realize they'll have to pay significantly more.
Those not eligible for subsidies generally receive more comprehensive coverage than they had under their soon-to-be-canceled policies, but they'll have to pay a lot more.
Because of the higher cost, the Griffins are considering paying the federal penalty - about $100 or 1 percent of income next year - rather than buying health insurance. They say they are healthy and don't typically run up large health care costs. Dean Griffin said that will be cheaper because it's unlikely they will get past the nearly $13,000 deductible for the coverage to kick in.
(Excerpt) Read more at hosted.ap.org ...
So, for Ken Davis [mentioned in the article], his premimum WILL NOT be $600/month - but will be $1100/month for 2014 [which he can't afford]. He'll get $6000 kicked back to him as a refund after Jan. 1st 2015.
And, the possible pitfall is that when people receive thousands off dollars in a single check as a refund - they are gonna blow it all instead of banking it to pay for the next year's premium on a monthly basis ...
That is incorrect
The subsidy (aka your and my tax money) is sent to the insurance company and the insured person only pays the difference.
http://www.csmonitor.com/USA/DC-Decoder/2013/1001/Obamacare-101-how-the-federal-subsidy-works-video
A Plan to destroy American Healthcare, demoralize
doctors and bioengineers, and to put computers
and criminal illegals (Peru and other countries)
in charge of fleecing $$$$$ from sick Americans.
And... it was spawned in a US prison, and was never
even read by Congress.
WHAT COULD POSSIBLY GO WRONG?
Had the Associated “Press” been doing their job this nightmare would never have become law.
Merry Christmas from your friendly Federal Government.
There are 2 ways to get the subsidy - sent to your insurance company ahead of time OR in your refund.
You are playing with fire if you have it sent to your insurance company. Read the following carefully:
I’ll wager you that 95% plus will take the subsidy up front.
If those people take the subsidy upfront, work by the hour, and get more overtime going over the 400% FPL [due to less people being hired], they are screwed ...
You’re using information and logic, items not often prevalent in the “subsidy” population....
Thanks for your post confirming what I posted.
I have seen this misrepresented dozens of times on FR and try to correct it when I see it.
Outrage against Obamacare is one thing, but we need to try and maintain accuracy.
For the tax to be ~ $100 they would be making $10,000 or less per year. If they make $50K its $500 and if making $100K its $1000.
Still cheap compared to Obamacare.
The Good news is the IRS is not allowed to punish us for not paying the tax. Little they can do,
Resist, don't comply
That’s interesting, I never heard that.
That would cause big problems.
Your not kidding. I have come to realize that I don’t despise Obama as much as I do the press that did not do it’s job when the time was right. Obama would never have been nominated but for a compliant press.
What I do want everyone to think carefully about is what happens in 2015 (but only after the 2014 elections).
When the people who are currently covered under an employer based plan, also get a taste of the new rate sticker shock, but are ineligible for any tax subsidies, no matter their income level, if they elect to decline their employers plan.
The goal of the Feds and the holy grail to Democrats is a “single payer” system.
Full blown, low quality, government approved, free medical care for everyone except government employees.
“They” will get special doctors and hospital care unavailable to the masses, because they are vital to the nation.
I believe I have gleaned that the targeted tax goal is an additional 20% on every nongovernmental employee.
Got a paycheck?
Hand it over.The Feds and Democrats will decide how much you deserve to get back, and are allowed to live on.
This includes all the deluded minimum wage unskilled workers who think the greedy rich people and businesses are evil and cheating them out of what they deserve.
I have seen this misrepresented dozens of times on FR and try to correct it when I see it.
Outrage against Obamacare is one thing, but we need to try and maintain accuracy.
GEE - I guess I, too, should get certified BEFORE reading the IRS Regs:
From:
http://www.irs.gov/uac/The-Premium-Tax-Credit
***** Getting the Credit
To qualify for the credit, you must get insurance through the Marketplace.
During enrollment through the Marketplace, using information you provide about your projected income and family composition for 2014, the Marketplace will estimate the amount of the Premium Tax Credit you will be able to claim for the 2014 tax year that you will file in 2015.
You will then decide whether you want to have all, some or none of your estimated credit paid in advance directly to your insurance company.
Change in Circumstances
Report income and family size changes to the Marketplace throughout the year. Reporting changes will help make sure you get the proper type and amount of financial assistance and will help you avoid getting too much or too little in advance. Receiving too much or too little in advance can affect your refund or balance due when you file your 2014 tax return in 2015.
For example, if you do not report income or family size changes to the Marketplace when they happen in 2014, the advance payments may not match your actual qualified credit amount on your federal tax return that you will file in 2015. This might result in a smaller refund or balance due.
Claiming the Credit on Your Federal Tax Return
For any tax year, if you receive advance credit payments in any amount or if you plan to claim the premium tax credit, you must file a federal income tax return for that year.
If you choose to get it now: When you file your 2014 tax return in 2015, you will subtract the total advance payments you received during the year from the amount of the Premium Tax Credit calculated on your tax return. If the Premium Tax Credit computed on the return is more than the advance payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. If the advance credit payments are more than the Premium Tax Credit, the difference will increase the amount you owe and result in either a smaller refund or a balance due.
If you choose to get it later: You will claim the full amount of the Premium Tax Credit when you file your 2014 tax return in 2015. This will either increase your refund or lower your balance due.
More Information
More detailed information about the credit is available in our Questions and Answers.
In addition, the Department of the Treasury and the IRS issued the following legal guidance related to the Premium Tax Credit:
•Final regulations on the rules for individuals who enroll in qualified health plans through Marketplaces and claim the Premium Tax Credit.
•Final regulations on the Premium Tax Credit affordability test for related individuals.
•Proposed regulations on determining minimum value of eligible employer-sponsored plans and other rules regarding the Premium Tax Credit.
•Notice 2013-41 on determining whether or when individuals are considered eligible for coverage under certain Medicaid, Medicare, CHIP, TRICARE, student health or state high risk pool programs.
An electronic flyer entitled "Facts about the Premium Tax Credit" (Publication 5120) is available for public use and distribution.
Check Post #19 - didn’t get your nick correct ...
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